EUR crosses/GBP crosses/Trade Ideas

EUR/GBP: Trade-idea developing for bulls

The 38.2% retracement of the 5-wave upmove from .7750 to .8160 retraced exactly 38.2% to .8005 and there is a possibility of a basing formation on the short-term charts. Coming on the back of Deutsche Bank’s very bullish fundamental analysis last week, there could be an extremely good entry level for bulls (see Chart Ideas in Members section for full analysis).

  1. Good morning Sean and all,

    Regarding EURUSD, here are my recommendations for today:
    – Buy dips in between 1.2835 (200DMA) and 1.2815 (horizontal resistance) with SL below 1.28 and objectives 1.2850, 1.2890.
    – or VERY RISKY: Buy the breakout of 1.2955 (upper range of Friday) with as target 1.2990 (pivot).

    Analysis: The markets did not succeed in breaching the master trend line resistance from 1.20 and rebounded thanks to the positive US GDP numbers. This might lead us higher purely by inertia today. However, our view remains bearish on EURUSD since there is still no movement from Mr Rajoy. The spanish bond yields have came back to the middle of their range at 5.6% and are now neutral. This morning the market is also neutral and does not seem to be preparing for a big move. Most likely we will stay in a tight range especially that New York is out. We therefore recommend waiting for any moves down towards our key resistances to buy for some short term profits even though this is highly unlikely to happen today. The candlestick formed on Friday was an almost doji and suggests a potential short term reversal. That is why, one can consider the risky trade of entering long at the breakout of the doji range, for instance, a move above 1.2955 will open the way for a retest of 1.2990. This seems more likely today…

    http://www.chifbaw.com/en/wp-content/uploads/2012/10/eurusd291012lo.gif

    Good luck!

  2. Yep, I have seen that 😉

    Today the volatility is so low (price not moving at all!) that I am tempted to enter a trade just to see my personal effect on the market 🙂

    Sean, btw, I think I still didn’t get a registration password to enter member section…

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