IvanLabrie

EURUSD: In depth time at mode analysis of 3 timeframes

FX:EURUSD   Euro Fx/U.S. Dollar
9 months ago
The euro             chart is very educational, most would deem it unreadable chop...
I think it's clear sentiment is still very negative, and people want to sell the euro             higher, no one finds a reason to go long, yet we're in an uptrend.

This is good, if you're long, you're a contrarian for the most part, and when former bears start wanting to go long, they aren't finding a retracement or a way to enter safely (unless they are really brave, because every time the euro             falls, retail traders are on the short side, and not buying the dip, according to sentiment reads from FXCM's SSI             as well as a general trend in the tradingview publications and chat comments).

Right now, if you want to make money, you should go long, with the current trend, but keep in mind, fundamentally, the euro             is a short, in the long term, and we're approaching a very significant resistance. I had long positions, which I sadly unwound, but I might rejoin around these parts. My stop would be considerably wide, and I'd be vigilant to flip short when retail sentiment shifts sides, which I expect to happen if we break the 1.1714 mark like my weekly time at mode signal target suggests.

Interestingly, if April closes above 1.1091, we have a chance to hit 1.2120, but I see this as a more remote probability.

What's the trade here, you'll ask, simple, there is no simple read, the chart is clear though, and sentiment too. Fade the sentiment extreme, they will give up at the top (the bears). If you can, meanwhile, find excuses to go long, there's quite some room left before we can consider shorting EURUSD             , unless we have a week's high sitting below 1.09030, in which case, the uptrend would have failed. Until then, any dip is a buy gentlemen.

As a sidenote, the daily chart has an uptrend, and is forming modes higher, which gives us reason to long when we observe signs of strength in this timeframe too, but rgmov isn't favoring this approach, implying underlying sentiment is indeed bearish . Risk if going long off the daily, and not on a steep decline, is a new daily low, right now, so, not too safe.

Kind regards,

Ivan Labrie
9 months ago
Comment: If eurusd doesn't go any lower today, it might rally to my targets. You can long with a tight stop and a small position.
9 months ago
Comment: Like I said a new low would trigger a sell off. We can short this decline, and aim for the next support level below. Price crossed the recent FOMC meeting key level at 1.1379. Expecting to see it retest 1.1150-1.1020.
snapshot
9 months ago
Comment: http://imgur.com/a/DXgg1

Commercial traders are closing shorts and either going flat or net long the dollar vs the euro it seems.
9 months ago
Comment: Short acting well, we'll see continuation into the lows, expecting at least 1.1091.
9 months ago
Comment:
snapshot


The move has started I presume.
If you're interested in joining my trading newsletter or private lessons, message me. I trade Forex, Equities and Commodities. Contact: skype @ ivanlabrie, PM here or QQ (2954487803).
moneymaking
9 months ago
Great way to sum it all up mate. Appreciate the effort you have put into this and other analysis as well. Thank you :)
Reply
waterman
9 months ago
Everybody ( I mean ECB members and euro govts) want a euro short but nobody wants to take any action including even jawboning. for lighter euro . Why ? They dare not challenge US and FED and engage in a currency war. Sadly the result is only a even stronger euro
+1 Reply
suburra
9 months ago
Great analysis...agree
Reply
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