Top Trade Idea For April 24th, 2014 – EURUSD
By Mircea Vasiu on Apr 24, 2014 10:33:13 GMT
Time will tell if this analysis will turn to bear fruits as it implies the current gap in the eurusd is not going to be filled anytime soon.
The reason for calling such a thing is the fact that the whole pattern there, in the green labeling, is supposed to be a flat and the b wave green is not done yet. First wave a green ends with a beautiful expanding triangle that acted as a reversal pattern and then price moved in a corrective fashion to take the highs (but only marginal) and to form a contracting triangle.
So our recommendation for the short to medium term is a three steps move:
1. stay short until the 1.3740/50 area comes as that would be a logical target for the d wave purple to come;
2. then buy a bounce for the 1.3800/1.3838 take profit with 1.3670 stop loss;
3. finally go short aggressively shy above 1.3800 targeting the 1.3474 area and having a 1.3920 stop loss.
The whole pattern looks to be a common flat and it implies lows in wave a green to be broken, with a five waves structure to the downside.
This is a daily chart so give it some time to travel. However, the setup is quite tight with small stop losses and generous take profit levels.
About Mircea Vasiu
Mircea Vasiu has an MBA in International Business from an American University, graduating Magna Cum Laudae. He has been a professional trader for the last 8 years and is involved in various educational projects for different financial companies. He also runs a trading signal for the currency markets at www.capitalpropertiesfx.com.
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