EURUSD: A Look Ahead (Day 2) "I Got Long This Morning"

FX:EURUSD   Euro Fx/U.S. Dollar
Surprisingly the bulk of the movement on EURUSD             yesterday seemed to come in the…Asia session (whaaat?) Anyway, we are now down in a zone where I thought we may see a potential reversal. Personally I got long on the smaller Gartley pattern this morning (from 1.1231) but keep in mind we also have a bigger bat pattern lurking down at 1.1182.

I got the question yesterday asking “Akil which one will be more accurate to take?” Honestly, I don’t know. If I did, I’d bet the house on it but seriously, we never know what the market is going to do and if someone is telling you otherwise, then they’re lying to you and probably trying to sell you something. With that being said this situation is interesting because for some, the gartley pattern stops will be below the bat pattern completion which means that you’ll either have to choose one over the other, or split the position and take both trades.

I like the saying “a bird in the hand is better than two in the bush.” Meaning a completed pattern is always valued over a potential pattern assuming there aren’t any risk issues. I also like the protection that the 1.1200 level offers in the form of a psychological number and Fibonacci ratio cluster. Currently I’m looking for a push up to the 1.13 even handle to take profit, but that may change depending on how far this “D” leg falls.

Until we get out of this consolidation, I don’t really have any long-term outlooks on this pair, so I’ll continue to look for intraday opportunities until a true direction is determined. Other pairs on my radar today are the USDJPY             (already long), EURAUD             (again), EURJPY             and AUDUSD            

Akil Stokes
Chief Currency Analyst at http://www.TradeEmpowered.com

My Trading Videos: https://www.youtube.com/playlist?list=PL3pkGkL2zWpHt7X4ZeT0w0n6hk0C8Lwx1

My Latest Blog Post "Watch Your Position Sizing" http://tradeempowered.com/ask-the-trader-watch-your-position-sizing/
Not sure what to trade? If they are both in your trading plan, trade em both.
But i do not have to tell you that ;P
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Just remember not everyone can trade them both. We can't hedge over here in the US so those traders may have to make a decision unless they have multiple accounts
EURJPY looks good too, EURAUD as well, I think the US data might push this pair up. I'm long with a stop at 1.11893, good luck!

+1 Reply