Gonçalo Moreira, CMT
Independent Analyst
- The EUR/USD is hinging on a technical conjunction from a chartist point of view, usually associated with price gyrations or accelerations.
- The upward moving channel from the March low is now being abandoned on the lower side, with at least one daily closing below the supporting base line.
- The pair breaks thereby its September low lifting the USD index above its September high. Hint: some variants of USD indexation can serve here for confirmation purposes.
- The down move has been developing nicely in golden ratios (better seen on a lower time frame) which can serve as guidelines for the next days.
- As for positioning, on the long side several positions have been triggered and liquidated around the .10 big figure. Several open longs are deep in red and will be probably not be closed in a profit (average long at 1.1283). New limit longs are sitting at 1.0960, 1.0901, 1.0869 and 1.0854
- Compensating the eventual forced closing of the longs positions, a heavy clustering of shorts has been installed between 1.1131 and 1.1090
The trading methodology reported in this analysis is based on a non-directional approach. It is meant to capture the most amount of pips from the constant price oscillations, either up or down. Each trade has a take profit of 50 pips, a stop loss of 500 pips. The size of each trade is regular, but trades can be stacked around key support and resistance zones, increasing the overall position size around certain price zones. The system can perform either in trending or range bound markets, but it suffers when there is an extreme unidirectional price advance. Buy and sell positions are taken with two separate real accounts.
To learn more about the method, you can watch these special webinar series:
Exploring the Coast Line of Foreign Exchange Land - Part I
Exploring the Coast Line of Foreign Exchange Land - Part II
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