EUR/USD

Interbank research favours EUR/USD range trading

The big banks are busy sending their morning research pieces out to their big trading clients and of the 3 I’ve just read, all favour range trading for the EUR/USD:

  • Risk sentiment has generally improved although there is a lot of scepticism surrounding any stimulus out of China, more a case of ‘heard it before’:
  • Nothing new out of the EZ, with more delays likely and few decisions expected to be made until after the EU leaders meeting at the end of this month:
  • Solid sell orders above 1.3015 through 1.3050:
  • Solid buy orders starting at 1.2915 though 1.2880:

Buy dips, sell rallies is the uniform cry.

  1. Good morning/day Sean,

    How are things going for u? Are still on your AUDJPY trade? Mine was closed twice due to SL. Now, I am lost in translation to enter or not enter again?

    Regarding EURUSD, the correction within the correction is now finished since we broke the trendline resistance of wave B. Now we should go lower than 1.2815. Note how the support from the trend line coming from the lows at 1.226 is helping the euro now.

    http://imageshack.us/a/img163/8080/eurusd0910122.gif

    So for me, it is sell the rallies exclusively until we hit the main trendline support that comes from the bottom ar 1.20 or we hit some fibo level in the 1.27x.
    BTW, The drop has been too sudden in EURUSD, Il expect we stay in between 1.292-1.295 for the next hours.

    Good luck

  2. Morning Iridium, took a few mins to eat something and EUR/USD promptly drops 70 pips. I also got stopped in audjpy and have only a few tiny positions in play at the moment, its very difficult to find any clear cut trades in these choppy mkts. I was looking at selling eurgbp 8110/15 or buying big cable dips but didn’t get the chance to do either

  3. You should always have a 70 inch LCD panel in front of your table with all the quotes flashing in front of your eyes while you eat…:-)
    That’s the “master of the world” type of trading approach.

  4. Sean, what do you think about EUR/USD now after the sharp decline? I bought at 2940 as I saw this as a stop hunt after bids 2950-60 got filled. Got stopped out quickly after entering, at 2920. Fortunately, I used a small position size.

  5. Hi Milan, I must admit I find the EUR/USD probably the hardest currency to trade, with volumes at some levels astronomically big and then vacuums appear with little or no liquidity. Overall I think that the EUR rise on the crosses like eur/gbp, eur/aud has been almost vertical so perhaps we get a few sessions of weakness on the crosses?

  6. Sean,

    What are the levels that you look for on dips buyers mode ? On previous comments, you mentionned a strong bids at 1.5950. From my technical analysis, i have nothing on this level, apart from the lowest on 09 sept at 1.5957. On the other side, we have convergences of points at 1.5920 (200 weekly MA) + 1.5910 : Fibio 38.20% (1.5267-1.6310) + old’s resistance on 23th august at 1.5910 + 1.5900 (55 daily MA)

    http://imageshack.us/a/img840/5526/cablek.jpg

  7. Hi Papillon, I think you’ll find that the big Sovereigns in particular tend to trade around 50 or 00 rather than any particular technical level. I have no idea whether this is a good entry lvl or not, unfortunately there is no substitute for sitting long hours in front of the screen waiting for opportunities to appear. Only then do we know whether the lvls are right or not. (Plus cable doesn’t trade well technically, or so I maintain 🙂 )

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