Hi guys, Update/analysis and trade plan for the next 24 hours
Macro-data
DOW – down 31.26 points to close at 12,573.27
Oil – down $0.06 to close at $85.75 – next level of support is $84.33
Gold – down $4.70 to close at $1,571.00 – Next level of support at $1,574
Dollar index 83.617 – 52 week range is Low: 73.421 – High: 83.542
13 of 22 pairs I cover moved 100+ overall pips during last 24-hour session. The biggest mover was cable at 124 pips.
Current Market Conditions Analysis
E/U – current 1.2202 – Last 4 sessions – the pair has moved 84, 86, 99, and 70 pips overall. +48, -63,-12 and -37 at close. Pair in a tight range of 1.2164 to 1.2324 for 160 pips last 4 sessions. So, 1.2164 and 1.2324 are breakout ranges under current market conditions.
SWING PLAYERS; we must remain patient as pair is in tight range and actually favors scalpers and day traders or oscillator channel traders (SELLING rallies at top or BUYING at bottom of channels) This is a summer time thing that tends to work over the next 2 months historically. Swing players range is 1.2460 to 1.2219 / 1.2200 area and compressed channel 1.2164 to 1.2324 for 160 pips last 4 sessions. Need to close below 1.2200 (almost there) for next move to 1.2019/1.2000 area.
TRADE PLAN(smaller targets trading oscillating channels and smallish DR's)
E/U – current 1.2202 – Let pair move past 1.2230/1.2240 area and reverse – place a SELL STOP at 1.2219 using a smaller TP rane to lock in profits. I will be looking to lock in some at 1.2200 and again at 1.2189 and let the last 1/3rd ride.(stops 15 pips above the high if this triggers)
A safer entry(where I will take if the above trade does not come to fruition is a SELL at 1.2189 (WATCH BOUNCE in Asian Session) – Tp areas will be 12-20 pips for TP1 and 30-50 pips for TP2 depending on market timing and momentum(stops 23 pips above the HOD if triggers)
G/U – current 1.5425 – PENDING SELL STOP 1.5399 (I will be cautious and monitor with TP1 12-20 pips and TP2 25-to-50 pips – May Stall 1st Time in Asian Session(stops placed 23 pips above the high if this triggers
Alternative trade plan: Let pair move past 1.5545/1.5555 area and reverse –SELL STOP 1.5527 with TP1 8-to-20 pips and TP2 25-50 pips(stops 15 pips above the high if this triggers)
I am aware this is the end of the week and will be cautious with shorter TP's and less leverage due to end of week profit taking.
Good luck everyone
Wulf
Macro-data
DOW – down 31.26 points to close at 12,573.27
Oil – down $0.06 to close at $85.75 – next level of support is $84.33
Gold – down $4.70 to close at $1,571.00 – Next level of support at $1,574
Dollar index 83.617 – 52 week range is Low: 73.421 – High: 83.542
13 of 22 pairs I cover moved 100+ overall pips during last 24-hour session. The biggest mover was cable at 124 pips.
Current Market Conditions Analysis
E/U – current 1.2202 – Last 4 sessions – the pair has moved 84, 86, 99, and 70 pips overall. +48, -63,-12 and -37 at close. Pair in a tight range of 1.2164 to 1.2324 for 160 pips last 4 sessions. So, 1.2164 and 1.2324 are breakout ranges under current market conditions.
SWING PLAYERS; we must remain patient as pair is in tight range and actually favors scalpers and day traders or oscillator channel traders (SELLING rallies at top or BUYING at bottom of channels) This is a summer time thing that tends to work over the next 2 months historically. Swing players range is 1.2460 to 1.2219 / 1.2200 area and compressed channel 1.2164 to 1.2324 for 160 pips last 4 sessions. Need to close below 1.2200 (almost there) for next move to 1.2019/1.2000 area.
TRADE PLAN(smaller targets trading oscillating channels and smallish DR's)
E/U – current 1.2202 – Let pair move past 1.2230/1.2240 area and reverse – place a SELL STOP at 1.2219 using a smaller TP rane to lock in profits. I will be looking to lock in some at 1.2200 and again at 1.2189 and let the last 1/3rd ride.(stops 15 pips above the high if this triggers)
A safer entry(where I will take if the above trade does not come to fruition is a SELL at 1.2189 (WATCH BOUNCE in Asian Session) – Tp areas will be 12-20 pips for TP1 and 30-50 pips for TP2 depending on market timing and momentum(stops 23 pips above the HOD if triggers)
G/U – current 1.5425 – PENDING SELL STOP 1.5399 (I will be cautious and monitor with TP1 12-20 pips and TP2 25-to-50 pips – May Stall 1st Time in Asian Session(stops placed 23 pips above the high if this triggers
Alternative trade plan: Let pair move past 1.5545/1.5555 area and reverse –SELL STOP 1.5527 with TP1 8-to-20 pips and TP2 25-50 pips(stops 15 pips above the high if this triggers)
I am aware this is the end of the week and will be cautious with shorter TP's and less leverage due to end of week profit taking.
Good luck everyone
Wulf