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EURUSD Breakout Looms XXXL

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Written by Administrator
Thursday, 29 July 2010 16:33
This action on the EURUSD is sticky. I set up for a break out and ended up moving it to a scalping position. You can see the accounts I traded below. They all look about the same, a small scalp move.* (Past performance is not indicative of future performance.) The problem is, as price action gets wound tighter, the break out can be more erratic and substantial. Meaning that if you are on the wrong side of it, the pain can also be substantial. I am clearly expecting price to take on the top side again tonight, maybe in Asia if the US stock market can stay positive, lending a hand to risk. This 15 minute chart has a 1 hour chart laid over it to show the two hourly candles that are a cause for concern for today. Selling appeared pretty heavily at the 1.3100 area, but 1.3060 has so far kept the buyers in the game. As for me, since I am expecting a EURUSD 1.3086 attack before the week is out, I will take up more long positions if price gets back to the 1.3060 area. I would be very skeptical of a move to the lower line on the bump and run setup shown below. That would have the pair back at 1.3000, and I don't see that yet.
Last Updated on Thursday, 29 July 2010 17:00

EURUSD Support Comes Into Play

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Written by Administrator
Wednesday, 28 July 2010 08:07
Heres that 15 minute chart. You can see the dance that price action has had witht he 200 ema over the last 36 hours. Price is currently testing it again looking for a break to the lower line from the chart from last night.Remember we are looking for support by way of the 1.2965 area if a break lower is sustained. There are two points of support that I see in the pair this morning. First teh 15 minute 200 period moving average at 1.2982 and then a bit lower around 1.2965. I don't do not think the lower one will come into focus. This latest fall from 1.3040 is disheartening. I want so badly to trade to the top side, but the samller breakouts keep stalling. Whats worse, they are stalling at lower levels. I guess I will have to stick with Range trading for the time being.
Last Updated on Wednesday, 28 July 2010 12:21

*Risk Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Hypothetical versus Live Results: Always assume that results shown in articles on this blog are hypothetical results. If they are not hypothetical results, they will be clearly and un mistakenly identified as "live account" results. Otherwise all studies, script analysis, trading strategy analysis and other results are HYPOTHETICAL RESULTS and not traded on a live account.

** “Hypothetical performance results have many inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particularly trading program.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk. Variables such as the ability to adhere to a particular trading program in spite of trading losses as well as maintaining adequate liquidity are material points which can adversely affect actual real trading results.”