Top Trade Idea For March 11th, 2014 – EUR/USD
By Gregor Horvat on Mar 11, 2014 12:41:49 GMT
EURUSD moved sharply to the upside last week after ECB press conference and more importantly price traveled above the high from December 2013. Based on that we can assume that price has broken out of the range and that market will continue to the upside; ideally towards 1.4000 psychological level.
As traders it’s good to play trades with the trend rather than against the trend. As such, there can be an opportunity to join the trend if we consider a breakout and room for 1.4000 level.
I personally like to get involved in the market after a three wave move, which is a structure of a corrective price action based on the Elliott Wave terminology. As such, we will know check the lower time frame, such as 4h.
On the chart below we can see higher highs and higher lows which mean that current sentiment is bullish, therefore we can assume that reversal from latest high is just another temporary contra-trend move and that uptrend will resume. I am looking for an (a)-(b)-(c) decline that is in progress, ideally down to 1.3820/40 support area. In that region we have several technical levels that may form a base for the pair;
-wave (c)=wave (a) @1.3830
-38.2% and 50% retracement of 1.3707-1.3915 leg
-broken swing high at 1.3824 may become a support
With that said, there is possibility to play a long trade based on technicals, as follows;
Buy limit at 1.3830 with stops at 1.3760 and target at 1.4000
Written by www.ew-forecast.com
About Gregor Horvat
Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/ Try EW-Forecast.com’s Services For 14 Days for just € 1 at http://www.ew-forecast.com/service
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