Top Trade Idea For October 30, 2014 – EURUSD
By Mircea Vasiu on Oct 30, 2014 10:37:54 GMT
FOMC statement the other day brought nothing but a new wave of US dollars buyers and the eurusd is the pair that suffered the most given the bullishness of the Fed and the bearishness of the ECB.
As a consequence, the eurusd pair broke out of an ugly triangle on the hourly chart, a triangle that is called an irregular horizontal triangle and it may just be that this is the end of a complex correction for the 2nd wave of a bigger degree.
A complex correction that ends with a contracting triangle is called a double three running and the move that follows should be an impulsive move with the third wave extension.
Well, this is our scenario here, as after the Fed the other day the triangle broke the b-d trend line, even broke today in the London session the previous lows where the triangle began and this opens the gates for a look below 1.25 as I think it is dying to take some stops there until end of week/month is coming.
Speaking of end of week, you better watch end of week/month flows this coming Friday as it is not wise to fight Friday’s flows, especially after a hawkish Fed.
On the fundamental side we still have the CPI to be released in Europe early Friday into London’s trading and if current inflationary trend stays the same, then more pain should be expected on the eurusd pair.
Our recommendation is to stay short for two targets, 1.2437 and 1.2388 with 1.2690 being the invalidation level. All price action should take place now below the red line and without breaking the it.
It remains to be seen if market will confirm this scenario.
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.
Recent posts by Mircea Vasiu
- Top trade idea for December 1st, 2016 – USDCAD
- Top trade idea for November 24th, 2016 – USDCAD
- Top trade idea for November 17th, 2016 – EURAUD
Market commentary and/or opinions presented do not necessarily represent the opinions of ForexNews. You are advised to conduct your own independent research before making a decision. This website is an information site only. Accordingly, ForexNews makes no warranties or guarantees in respect of the content. The publications herein do not take into account the investment objectives, financial situation or particular needs of any particular person. You should obtain individual financial advice based on your own particular circumstances before making an investment decision on the basis of information on this website.