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Today was a great day for trading the breakout and buying it back off support at the bottom of newly forming 4hr trend channel. If it breaks up above 1.4150 I would start looking for a place to get short on a retest of the the highs or at one of the fibo retracement levels on the attached chart. If I were to get long I would prefer waiting for price to return back to the 1.4050 area as most breakouts are false breakouts. At least on the first attempts. Look for a pullback to buy into if you see a place to get long. From a long term trading perspective, I'm still bearish and will look to short rallies. Expect a lot of volatility and two way trading opportunities until we get a break lower. Remember that it's Friday so don't over extend yourself. Trade light so you can relax over the weekend. There will always be another trade. Just have a little patience.

euro4h.jpg.dc51f73acaf88a647460c926a02b2976.jpg

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The eur/usd came down into the buy zone and made a low of 1.4014 this week before rebounding up to 1.4169. Hopefully, you were able to spot this setup from my previous post on Friday. I would start looking to sell around 1.4170-1.4200.

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The previous sell at the 1.4170 area worked out nicely. Support entered the market around 1.4125 where it consolidated most of the day and then rallied higher during the London session. I am now looking to short once again around the 1.4200-1.4250 Value Levels.

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The previous sell setup around the 1.4200-1.4250 worked out well for about 50-80 pips depending on the entry. There were a few opportunities at shorting in that area. Since Friday, price has been consolidating at support, 1.4150, which was a great place to add to your longs. That won’t be the focus of this post since I didn’t get a message sent out about that setup. I am now looking to short between the 1.4250-1.4300 area. Adjust stops on any longs you’re holding and let them work. The funny thing about trends is that they are persistent and take awhile to turn around. Nevertheless, there are many great counter-trend opportunities if you know what to look for. Just don’t hold on to them as long as you would a trend trade.

euro4hs.jpg.5ecafbd8543c42829393226512858491.jpg

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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.

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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!

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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.

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The quick post feature has been freezing up on me and I just noticed my message from Friday wasn't posted. Here it is.

 

Hi FXTrader, thanks for your posts, that happens to me sometimes as well. I simply switch to advanced editor and then the posts seem to go through.

Coincidence or solution? Dunno but works for me.

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Hi FXTrader, thanks for your posts, that happens to me sometimes as well. I simply switch to advanced editor and then the posts seem to go through.

Coincidence or solution? Dunno but works for me.

 

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...

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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.

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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.

5aa70e1cade44_Euro11-06-07.jpg.7d867a83da7db2d37fe545de4d39b832.jpg

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Where do you see first line (potential) supports hitting on your sell reccomm's FXT?

 

4670-90?...4620?....harder back to 4570 initial?

 

Just trying to get a handle on your geography, timezone.

 

Good thread.

 

gl & gt.

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You join the (Mid-East & Asian) bargain hunters down at your .4780 top line support earlier hotshots?

 

They sure don't want to let this rag go huh!

 

Nice bounce & kick off the well lit s&r zones on EU/YEN. That's the sweetheart (+ Geppy) to be on this week.

 

'Gun em & run em' Annie Oakley - just don't let Krantzy loose, he'll want to marry em :o :helloooo:

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You join the (Mid-East & Asian) bargain hunters down at your .4780 top line support earlier hotshots?

 

'Gun em & run em' Annie Oakley - just don't let Krantzy loose, he'll want to marry em :o :helloooo:

 

Naaahh, quiet day really.

 

No more Euro purchases today here. Just lightened up into Frankfurt & left the stops loose. Happy to watch it loll around up here.

 

Yeah, another fine 162.5 to 160.5 ladder run. Wasn’t on it unfortunately, but agree, those 2 pairs off their respective levels, are home runs this week. Nice fast money in the bank.

 

Art won’t hold anything beginning with a Y since 111.50. BoJ officials are hitting the mic (again) & beginning to jawbone in droves this week as Yen pops thru 110.

 

They’re ok as intraday bets, but he’ll let the bravehearts hold the size at these levels.

 

Reckon they’ll try spook some of these lazy, nervy European longs into the w/end maybe? A long overdue shakeout?

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Hard to say. Volumes are light to the tune of 40% stepping into NY today. No doubt they'll be a few 'whack jobs' attempting to mug the liquidity while every other sane citizen is stuffing turkey into their gobs.

 

I don't ( & doubt you do either) give a whole sack of s*** whether it tanks or pumps. It'll get re-calibrated when we get back to the monitors next week.

 

If it pumps we'll be sinking bigger bottles of Dom P for coffee breaks .....if it tanks, just blame Krantz :o

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Some of the pairs look very interesting for hold over the weekend but not sure with the light volume for today and tomorrow if it's advisable. I'm going to try with a small position and wider stop to be sure I won't get stopped out. Any observations on this one?

 

USDJPY-CONFIRMING-BREAKDOWN.gif

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