Market Winning Trade Set-Ups for 08/09/2015


Currency Pair: EURUSD
Closing Price: 1.0962
Entry Order: BUY stop @ 1.0980
Stop loss: 109.32
Take profit: 1.1109

Analysis: It is widely anticipated that the US Federal Reserve will start to raise interest rates beginning next month (Sep). Based on a normal knee-jerk reaction, the US dollar should rise on these expectations. However, given the technical picture I am looking at, the US dollar is flashing some very bearish signals (and bullish signals for USD cross-pairs) - that is why following price action trading (vs fundamental analysis), is so important and valuable. For some months I have been saying that I am confident the double-bottom formed in the EURUSD in the Mar-Apr timeframe, at or near the 1.0500 price level, will hold, and that we should see prices begin to rise in this pair following the summer malaise. On Friday we had another key reversal at an important support level (between 1.0800 and 1.0900). Should we go above Friday’s high price, I believe we will see good-follow-through to higher levels.