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Originally Posted by Summerset
As its established that lower levels will no longer be seen. And to quickly capitalize on the coming advance. Recommend to long early next week <3124-43> level. Keeping stops below 3110, as far as 3089. Target 3270 (liquidate 50%), & add 50% longs between <3230-3190>, to continue riding longs to 3430. (liquidate all).
Profitable trading to All.
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Lower levels were not seen, despite massive Yen strenght last week which severed the Eurodollar's advance.
Though we would like to artribute this to our technical forecast (posted above). The reality of the situation is that with both Dollar & euro getting battered before the yen. The Euro advanced against its crosses (EurAud, & EuroSterling), where as the dollar failed. (Euro closed above daily intraday breakout ranges aganist both Sterling & Aud- Whereas the dollar didn't)
Our 3143 longs barely engaged -luckily too. The 3270 target was not met.
All CCi readings (Month, Week & Day) are trending long. Negative retractions on the 4hr CCi as long as they run contrary to a daily positive trending CCi graph are to be considered additional price consolidation work - and as such - dip buying opportunities.
We therefore continue to hold our position towards 3270 (1st target) & 3340 (Ammended Final target). Aggressive traders can also add to the position @ 3110/15 (if seen) - keeping SL below 3068.
On the Charts below note that Eurodollar has been moving up in a serries of re-curring inverted head & shoulder formations. This usually throws traders off the main advance- just as its about to breakout.
Down retractions have been in a re-curring serries of double top formations too.
Needless to say, had traders been able to
see the patterns earlier. The sighting would have paid off handsomely. Both in breakout returns, and in measuring calculations of retraction ranges to re-load longs from.
Currently, another double top - inverse H&S formation appear to be in the making. (See Charts).
We will therefore aim to capitalize by closing longs @ 3330/40. Short there, and hedge our Eurodollar shorts, buy placing orders for Swissdollar shorts, incase the double top is violated. Else, ride the Eurodollar shorts back to 3090-40, (double top neckline). And Re-long at the double top neckline for an assult / break above the I-H&S neckline (3340).
Swissdollar hedging probability to be also engaged when longing @ 3090-40.
The set up is all best illustrated on the attched charts.
For the coming week the concentration will be on successfully closing @ 3340.
Profitable trading to Everyone.