Eurodollar Intraday Trades

Back in may all traders were buying dips @ 2800, And just below. The general consensus was that Eurodollar would see 1.36 Again. U were considered fortunate, to catch a dip below 1.28. And as such would try to hold on to it, as long as possible to see 1.30 levels.<O</O

After 3 consecutive tests in March/April & May. The 1.28 platform gave way. The Eurodollar plunged. And the general consensus sharply changed.<O</O

The Downward trend line that resulted, was never broken until the Flag mast from 1-2<O</O

Candle B of this Flag mast (1-2), has been sitting on this trend line ever since 5/7/05</FONT>. It has effectively turned the trend line from a resistance to a support. <O</O

Not only hasn’t a single candle managed to attack that line again. More important, No candle has even been able to close below (violate) 50% of this candle.<O</O

This gives a very strong idea to the strength of the price support platform that has been created at (Line B/B). A Very Strong Support platform has been established @ 2028.<O</O

Prices may test it, & even dip below it. But are never tolerated to stay below, let alone close there.<O</O

The trend is yr friend until it bends. So the saying goes. Well this one certainly has. The trend has effectively changed, from downward to consolidatory.<O</O

The turning point from consolidatory to Upward, will be established with the 1<SUP>st</SUP> candle that closes above point (2) of the 123 formation, shown at the bottom of the chart. It is no coincidence that this point (2) also requires a clear break of & close above the 38% Fib.<O</O

The pitch fork drawn on the enclosed chart, marks out the potential for the coming reversal & Up trend, with regards to Buy / Sell opportunities.
<O</O
Long termers are advised to start buying in-mass, to create a foundation base on which to pyramidize future trending longs. In this case, the R/R ratio at this turning point could never be better.<O</O

Intraday traders are advised to Buy & Sell bounces off the Upper & lower trend lines of the pitch fork. Specifically where such trend lines intersect with long & shot term Fibs.<O</O

Mind U only long term fibs are shown on the chart. Short term fibs would need to be re-drawn pending future weekly up-moves.<O</O

It is possible of course that the Eurodollar could still go down. But to do so, it appears, there must be a massive fundamental set back. That has not been calculated & comes a complete surprise to the market.<O</O

Intrest rate differentials are no longer enough. The Market has already forecasted a ceiling of 4-à 4.25%. And discounted that. Another catalyst is needed. And until it does evolve, what the market is technically saying is that Eurodollar is due for a reversal. And It would be a shame, to stand unprepared, & waste its potential.

8:00 GMT

hammer on 30-min has negated the divergence. (Chart enclosed). Will Buy bounce of thw WMA/20. (Red line)

Bounce off 1st Fib fan line on 4-hr chart, has signaled strenght to long again the TEE @ 2215. (Chart Enclosed)

Have Bought 2222 & 2220.

Leave Limit Buy Order @ 2215 again if / when seen

SL @ 2185 with 18pip TSL trigger
TP @ 2150 (35%) & 2340 (65%)

23:46 GMT.

Sell 2189/90 (Current Spot). TP 2160 SL 2210

A double top has formed on 4hr. Close of candle outside 1st Fib puts 2nd fib line under pressure with Macd negative divergence still in active play. (See 4-hr Chart)

Technically we are selling a rejection bounce of WMA/5 @ WMA/20, while both WMA/5 & WMA/20 are negatively crossed & running bellow WMA/100. And Negative Momentum (Macd below 0) in running on the Mcad 3,10,1 (See 30-min chart).

SL is above WMA/100

00:57 GMT

SL @ Entry. TP taken to 2140