I do not design my trading strategy basing solely on News, CNBC, Bloomberg,.... or a chunk of Fundamental datas released in the Open Source, Since correct data / info are only available to a handful of Bankers, Central Banks, Investment Banks, Fund Managers, and you and I are definitely not in this special Circle.
I would recommend traders to base on Chart and Price Action , and follow the trading development closely while the trading session is in progress,, especially during this period with high volatility and flooding of Market Rumors.
1.)) Set up for EURO/USD
If you look at the DJ (see Attached chart), S & P 500, FTSE(see attached), DAX , you may derive that further downward pressure on all the Indices may continue , AND it may be resulting in further strengthening of Both the USD and JPY as RISK aversion unfolds.
Euro traders have long awaited a concrete plan of action that solves lingering fiscal crises, but current deadlock suggests markets may have to wait yet longer.Financial markets want answers and resolution, and the lack of compromise(ECB/IMF/GERMANY/EURO UNION) could force further Euro losses through upcoming trade.
Euro traders have long awaited a concrete plan of action that solves lingering fiscal crises, but current deadlock suggests markets may have to wait yet longer.Financial markets want answers and resolution, and the lack of compromise(ECB/IMF/GERMANY/EURO UNION) could force further Euro losses through upcoming trade.
Then back to the below EURO/USD chart, you shall see that the 1.2343 (Nov,2008 low) is now an immediate Resistance , and 1.1639 is the next immediate support (OCT 2005 LOW), and 1.1420 is the following next support. The trading range next week may be between 1.2000 (Psychology level) and 1.1639.
I will execute as follows:
SELL STOP on next Market opening AFTER COMPLETION OF FIRST CANDLE IN M5 CHART ( AROUND 1.1930-1.1940)
Protective Stop : 1.2030 (approx. 100 pips)
Limit :OPEN or 250 pips
JPY shall move in tandem with the USD,, AS the political problems in Japan has almost settled with the new PM installation. Looking at the chart, it will be self explanatory, (Various Fibo Level, Retracement..) . THE Technicals signals the severe Downward Pressure on this currency pair and the possibility of -1000 pips cannot be ruled out !!
The proposed set up for EURO/JPY will be :
SELL STOP at next MARKET OPENING AFTER completion of the First candle in M5 chart,(109.00--108.90)
PROTECTIVE STOP : 150 PIPS
LIMIT : OPEN
HAPPY TRADING TO ALL......
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