FXTrader

Look to sell the euro between 1.4730-1.4750 and then again at 1.4800.

The trade setup was sent out just after the NY open Price was testing the initial Value Level 2.0450 and went up to 2.0500. There were a few chances at that trade before it went down during the Asian session and hit the second Value Level area of 2.0400 and came back up to the 2.0450 area. As you pointed out, support does turn into resistance many times but only when the conditions are right. 2.0500 could still act as a strong resistance but because of where we are at with these Value Levels I think it'll break. If not, that's ok too, because the long from the 2.0400 area is a free trade now. It's important to note that these Value Levels target key turning points in the market and are extremely accurate. They usually pull in 100 plus pips. If it's a trend trade then you can let them work and you can get several hundred pips. Pay close attention to these levels and learn to trade around them.

Good morning! If you shorted the euro near 1.4700, you're a happy camper now. While that trade is working my attention is drawn to the cable. I'll be looking to get long near 2.0450 and 2.0400. Yesterday and last night there were some nice bounces off 2.0500.

Start looking for a place to short the eur/usd around the 1.4700 handle and then again at 1.4750. If price goes that high, consider lightening up on the longs from below.

Start looking to sell the euro between 1.4750-1.4800. The longs from below are still working nicely. If this changes, I'll send an update.

The short setup from Friday played out for about 50-70 pips depending on how the trade was managed. Since then price has rallied higher. This is exactly why I’ve been saying to hold onto the longs while we take some countertrend trades. Talk about little extra icing on the cake! I am looking to short the euro between 1.4660-1.4700.

Here is a chart showing the sell setup.

The euro has finally made its way back up to test resistance. Look to short between 1.4520-1.4550.

The euro made its way back to 1.4430 where it died down. The market appears to be waiting for the flurry of data coming out during the London and US session on Wednesday. I prefer waiting for the market to show a little more life before entering. Keep holding the longs from below in case we get a break higher.

Ya, I ended up using the advanced editor this last time and it went through fine. Btw, the euro has dropped back down near previous support in the 1.4380 area. Watch this area closely into the London session. There may a place to get long again down there that could drive price up into the sell zone I mentioned earlier. Stay tuned...

Not much has happened today in the way of new setup. Overnight the euro popped up briefly to 1.4437, just shy of 1.4450 that I mentioned on Friday before trickling back down to 1.4376 where it found support. I would still hold the longs from below since volatility increases at new highs/lows. At the same time, I’m looking for a new short entry during the next trading sessions when trading activity increases. My initial target Value Levels to short are: 1.4450-1.4500. I’ll revise the numbers if this changes during the next trading sessions.

The quick post feature has been freezing up on me and I just noticed my message from Friday wasn't posted. Here it is. 10-26-07 The euro has been stagnant into the close as traders take off for the weekend. The cable had a similar setup as the euro and fell off about 100 pips. I am still expecting a correction on the euro so keep looking to sell into this rally. Especially, if it shoots up to 1.4450. Don’t get suckered into that move and get caught buying a top. Wait for a correction to get positioned. Have a great weekend!

The euro rally has continued nicely. I would keep looking to buy dips for the time being, possibly around 1.4250. I'll confirm that Value Level when price is near it. In the meantime, if you want a countertrend trade, look to sell the euro between 1.4370-1.4400.

The long on the euro from 1.4130 is working out very well. Make sure to manage your trade and consider leaving something on the table for a possible retest of the 1.4350 area or better.

The short on the eur/usd from 1.4300-1.4350 has played out nicely. Start looking to get long around 1.4130-1.4100 and then again around 1.4050.