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Setup

Weekly Direction: Bearish

As the price continues with its bearish formation, it is reaching the base of the channel. The base of a bearish channel however, is a poor predictor of a bullish reversal, but it will nevertheless give the market to pulse or correct itself momentarily.

Figure 2: Euro 4 Hours Chart

This week’s pivotal price level is at 1.2585. Market will try to give it the last push to reach this level before scrambling to recover itself. A good strategy is to continue with bearish stance at lower position sizing. There will be an opportunity to trade when the price reaches the channel resistance line at around 1.2800.

This Week’s Trading Strategy Suggestions:

LONG:
LONG above 1.2800 targeting 1.3000(short term)

SHORT:
SHORT below 1.2800 targeting 1.2500 (short term)

Good Trading.

Weekly Direction: Range

Last week the price was able to sustain below 1.3200 which is an important development where the price action is now catching up with the fundamentals. Technically, we shall continue to see further weakness as the price moves within the bearish channel.

Figure 2: Euro 4 Hours Chart

This week’s pivotal price level is still at 1.3200. A rally above 1.3200 will send the pair to test 1.3500. As long as the price is trading below 1.3200 expect the price to trade and test the support at 1.2870 or may extent to 1.2585. An ascending trendline can be used a trigger to lock in a short position when price failed to trade above 1.3200.

This Week’s Trading Strategy Suggestions:

LONG:
LONG above 1.3200 targeting 1.3500(short term)

SHORT:
SHORT below 1.3200 targeting 1.2870 (short term)

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Setup

Weekly Direction: Range

A new break below 1.3200 (c) further strengthen the bearish channel formation that will see the price eventually touching point (a) before a stronger correction to point( b).

Figure 2: Euro 4 Hours Chart

This week’s pivotal price level is at 1.3200. A rally above 1.3200 will send the pair to test 1.3500. As long as the price is trading below 1.3200 expect the price to trade and test the support at 1.2870 or may extent to 1.2585.

This Week’s Trading Strategy Suggestions:

LONG:
LONG above 1.3200 targeting 1.3500(short term)

SHORT:
SHORT below 1.3200 targeting 1.2870 (short term)

Good Trading.

Weekly Direction: Range

Although the weekly bearish channel continues to form, we have another week of inside candle formation. Likely scenario for this week will be a tight trading range.

Figure 2: Euro 4 Hours Chart

This week’s trading range will be confined to 1.3615 and 1.3200. Although it is unlikely, a break outside this range will see price moving into a new territory lower to test 1.2860 or reversing the bearish trend treading onto higher ground of 1.3850.

This Week’s Trading Strategy Suggestions:

LONG:
LONG above 1.3615 targeting 1.3850(short term)

SHORT:
SHORT below 1.3200 targeting 1.2860 (short term)

RANGE:
BUY LOW above 1.3200 SELL HIGH below 1.3615

Good Trading.

Weekly Direction: Bearish

The bearish channel formation continues to build but the nature of the price action indicates that it is corrective in nature, thus the wave label WXY. However the weekly candle is inside the previous week candle, signifying possible consolidation within the current price level.

Figure 2: Euro 4 Hours Chart

This week’s pivotal price level is at 1.3400. If the price stays above 1.3400, it will send the pair to test 1.3615 or may extent to 1.3850. When the price manages to trade below 1.3400 expect the price to trade and test the support at 1.3260 or may extent to 1.3000.

This Week’s Trading Strategy Suggestions:

LONG:
LONG above 1.3400 targeting 1.3615(short term)

SHORT:
SHORT below 1.3400 targeting 1.3260(short term)

Good Trading.

Weekly Direction: Bearish

The bearish channel formation continues to build but the nature of the price action indicates that it is corrective in nature, thus the wave label WXY.

Figure 2: Euro 4 Hours Chart

This week’s pivotal price level is at 1.3425. A rally above 1.3425 will send the pair to test 1.3615 or may extent to 1.3850. As long as the price is trading below 1.3425 expect the price to trade and test the support again at 1.3230 or may extent to 1.2960.

This Week’s Trading Strategy Suggestions:

LONG:
LONG above 1.3425targeting 1.3615(short term)

SHORT:
SHORT below 1.3425 targeting 1.3230(short term)

Good Trading.

Weekly Direction: Bearish

The bearish channel formation continues to build amidst strong intraday buying throughout the week at the back of bond buying by ECB. Nevertheless Euro is expected to trade lower in the coming weeks.

Figure 2: Euro 4 Hours Chart

This week’s pivotal price level is at 1.3615. A rally above 1.3615 will send the pair to test 1.3850 or may extent to 1.4000. As long as the price is trading below 1.3615 expect the price to trade and test the lower support at 1.3230 or may extent to 1.2870.

This Week’s Trading Strategy Suggestions:

LONG:
LONG above 1.3615 targeting 1.3850(short term)

SHORT:
SHORT below 1.3615 targeting 1.3230(short term)

Good Trading.