Top trade idea for May 21st, 2015 – EURUSD
By Mircea Vasiu on May 21, 2015 09:53:20 GMT
This is the fashionable usdcad pair and I am both bullish and bearish on the pair as the current setup suggests the move to the downside is a so called double combination.
If that is the case, then it means it is a three waves structure and three waves structures in the a wave position are always retraced 61.8%. In our case, this points towards the 1.2500 area and that is the reason for staying on the long side.
There is a risk of course, like in any corrective pattern, that market makes a new low as a wave of a lower degree, and then bounce, but for that we have the stop loss in place.
After the 61.8% is retraced, I am favoring the downside so placing a pending sell limit order is the thing to to, with a stop loss at 1.27. Double combinations rarely are retraced more than 80% of their length so that is a great area to short the pair.
What’s the target? 1.2050 of course.
Fundamentally speaking, the move may come either with NFP or Canadian jobs data at the beginning of June, or with the press conference after the June FOMC meeting.
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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