The weakness in the
euro is getting a reprieve and despite today’s strength, I see it as an
opportunity to set up a longer-term intraday swing short on both the EUR/USD
and EUR/JPY.
Risk is on for today and this is
pushing the dollar and yen lower against the euro but the play I am looking for
is the trend-follow which means I will look for near-term resistance to sell
into as I would expect exhaustion and the larger, dominant trend to ultimately prevail.
Past performance is not indicative of
future results
The
240-minute chart of the EUR/USD is trending lower and today’s correction higher
of the “four to six o’clock” downtrend is an opportunity to enter short with the
trend. Notice the consistent red GRaB candles that reflect the bears stronghold
on sentiment and momentum on this time frame.
Past performance is not indicative of future results
When
there is a dramatic rally such as the one seen today, it’s good to wait for
signs of exhaustion when looking to enter on a correction. In this case the rally
should find resistance and at that point – ideally – the longer-term trend
follow should at or near the entry area. The five and 15-minute charts are what
I call “building block” time frames. When I see the consolidation that follows
the uptrend exhausting, the confirmation for the 240-minute chart is found.
Past performance is not indicative of
future results
The
EUR/JPY is setting up a similar 240-minute set up. This entry differs from it’s
EUR/USD cousin since the level reached is only the 20 period SMA close or “aggro” or agrresive entry. The aggro entry
represents a shallower correction and therefore should only be entered with 1/4
to 1/3 the overall position size. This then leaves some powder dry for any more
upside where the conservative level – the 34 period EMA low – could be reached.
Past performance is not indicative of future results
Again,
the building block time frames should reflect some exhaustion but since the
EUR/JPY has only reached the 240-minute “aggro” entry, there is a chance that
there could be more upside in this pair before exhaustion sets in. One thing that
sellers have on their side is the likely selling pressure that the 97.00 major
psychological level could bring. Be cautious of a rally through the “00” though
as this could quickly usher in a move to 97.20, the minor psychological level.
As an
active forex trader and Chief Currency Analyst for InterbankFX.com I do write
for a number of sites all over the web and I am happy to say that I will be
posting updates atwww.IBFXconnect.com. MyActivity Boardwill feature the trades from my trading account as well as
intraday commentary.
Start the discussion! Questions?
Comments. Leave it here at the Daily Forex Trading Edge for Raghee to
personally answer. Using the icons at the top of the article to forward this
update to a friend via email, post it on Google or Facebook or simply print it
out for reading later.
Forex trading is one of
the riskiest forms of investment available in the financial markets and
suitable for sophisticated individuals and institutions. The possibility exists
that you could sustain a substantial loss of funds and therefore you should not
invest money that you cannot afford to lose.
Posted By:
Raghee Horner
Raghee Horner, chief currency analyst for IBFX, provides her personal daily trading tips and insights through Dailyforextradingedge.com. An experienced trader with over fifteen years in the markets, Raghee is the co-founder of EZ2Trade Software and has taught her brand of technical analysis and charting strategies to students all over the world. She is an international author and has taught currencies, futures, and equities trading for over a decade.
The weakness in the euro is getting a reprieve and despite today’s strength, I see it as an opportunity to set up a longer-term intraday swing short on both the EUR/USD and EUR/JPY.
Risk is on for today and this is pushing the dollar and yen lower against the euro but the play I am looking for is the trend-follow which means I will look for near-term resistance to sell into as I would expect exhaustion and the larger, dominant trend to ultimately prevail.
Past performance is not indicative of future results
The 240-minute chart of the EUR/USD is trending lower and today’s correction higher of the “four to six o’clock” downtrend is an opportunity to enter short with the trend. Notice the consistent red GRaB candles that reflect the bears stronghold on sentiment and momentum on this time frame.
Past performance is not indicative of future results
When there is a dramatic rally such as the one seen today, it’s good to wait for signs of exhaustion when looking to enter on a correction. In this case the rally should find resistance and at that point – ideally – the longer-term trend follow should at or near the entry area. The five and 15-minute charts are what I call “building block” time frames. When I see the consolidation that follows the uptrend exhausting, the confirmation for the 240-minute chart is found.
Past performance is not indicative of future results
The EUR/JPY is setting up a similar 240-minute set up. This entry differs from it’s EUR/USD cousin since the level reached is only the 20 period SMA close or “aggro” or agrresive entry. The aggro entry represents a shallower correction and therefore should only be entered with 1/4 to 1/3 the overall position size. This then leaves some powder dry for any more upside where the conservative level – the 34 period EMA low – could be reached.
Past performance is not indicative of future results
Again, the building block time frames should reflect some exhaustion but since the EUR/JPY has only reached the 240-minute “aggro” entry, there is a chance that there could be more upside in this pair before exhaustion sets in. One thing that sellers have on their side is the likely selling pressure that the 97.00 major psychological level could bring. Be cautious of a rally through the “00” though as this could quickly usher in a move to 97.20, the minor psychological level.
As an active forex trader and Chief Currency Analyst for InterbankFX.com I do write for a number of sites all over the web and I am happy to say that I will be posting updates at www.IBFXconnect.com. My Activity Board will feature the trades from my trading account as well as intraday commentary.
Start the discussion! Questions? Comments. Leave it here at the Daily Forex Trading Edge for Raghee to personally answer. Using the icons at the top of the article to forward this update to a friend via email, post it on Google or Facebook or simply print it out for reading later.
Forex trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.
Raghee Horner