We forecast for the week ahead:
1) Outline anticipated move
2) Outline Contingency Plan
3) Create trading plan around Price Action (entries planned on H4, H1, H15 dependent on your anticipated exit)- Updates will be provided.
4) Create a Risk management plan for unexpected fluctuations
5) Sit back relax
(See Related Idea Below)
Have a Key Resistance Zone between 111.850-112.000. Will require bearish PA confirmation around this zone before short setup is anticipated.
We anticipate a potential target of 111.250 with two management targets in place:
Management Target 1: 111.550
Management Target 2: 111.400
Stop Loss: Above 112.150 (Dependent on Entry)
If price breaches and closes...
Our upside target of 1.3100 still remains, we have a potential harmonic formation to be formed. We can expect 1.1800 to be retested as outlined in our previous posts (A potential bullish harmonic formation to be formed with “D” lining up with 1.1800.) For those of you that haven't entered the long can look for entries around this region with bullish PA...
Large stop loss ahead of NFP, if price moves in anticipated direction then positions will be added post NFP at key price levels and stop loss will be tightened. If price does break and close below the channel with bearish PA then this trade setup is no longer valid. It is a risk taking this trade as we are trying to predict NFP. However, all price action lines up...
Our Short Setups still remain as explained in our related idea (See links below). However, this post is to explain how the stop loss can be extended to 1.35200 in case of high volatility on the back end of NFP. We will seek bearish PA confirmation around 1.33950 - 1.34500, ideally 1.3400. As this will probably be traded pre-NFP we need space for some volatility....
Sometimes the simple trades are the best. Can anticipate a short to retest the breakout of the trend line. We have divergence on multiple time frames.
We can have a buy limit order around 1.12135 with stops around 1.11750.
For those of you that are sleeping, you can always wait for price to reach the trend line and seek bullish confirmation before entering. I...