Top Trade Idea For October 9th, 2014 – EURUSD
By Mircea Vasiu on Oct 9, 2014 10:08:12 GMT
After yesterday’s vicious squeeze brought by the FOMC minutes, it is time to take a look at the eurusd again and, while this is quite a small time frame, namely the hourly chart, it is still showing a very nice scenario.
The move to the upside is nothing but a zigzag and I suspect this one is part of a contracting triangle that should range between 1.28 and 1.2500 area, so a full three hundred pips and should stretch until December when the TLTRO effect is going to be seen more clearly.
Therefore, playing a range is the name of the game here and while I do think the eurusd will stretch to take a look above the 1.28 area, I would like to sell the pair at that moment, namely on a move above 1.2809, staying short until the 1.2580 area comes again.
That would be the b wave of the contracting triangle and this b wave should ideally take more time than the current move to the upside is taken.
FOMC minutes the other day showed members being worried about the strength of the US dollar but keep in mind that minutes are lagging. For example, FOMC members did not know at that moment of time the recent NFP data and unemployment rate droping to 5.9% in the United States.
Therefore, I would buy any dip in the US dollar, and this 1.2809 might offer us a great opportunity.
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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