Top Trade Idea For February 5th, 2015 – EURUSD
By Mircea Vasiu on Feb 5, 2015 11:06:31 GMT
Even though this is just the hourly chart on the eurusd, it is still worth talking about the pair as from a technical point of view it is forming a double combination as a leg of a contracting triangle and previous highs in the 1.15 levels should be broken.
The other day saw the euro taking a hit all over the dashboard as the ECB announced it won’t accept Greek collateral anymore but from a technical point of view that was only a place to buy the pair.
The move from the 1.11 area to the 1.15 is nothing but a classical zigzag, with both time and price respected, with the equality rule between the a and c waves respected as well, and this makes the move that followed the zigzag to be a corrective wave.
At this point in time, the only question is where the current spike higher will end, as this would open the gates for the b wave in green to start.
Therefore, our recommendation here is to stay long for 1.1550 area to come and anywhere between 1.1575 and 1.1600 a short is recommended targeting 1.1330 with a stop at 1.1750.
Again, it should take some time, but patience is key in a contracting triangle.
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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