Market Winning Trade Set-Ups for 08/16/2015


Currency Pair: EURUSD
Closing Price: 1.1107
Entry Order: SELL stop @ 1.1098
Stop loss: 1.1140
Take profit: 1.0911

Analysis: For the past several months I have been recommending buying the EURUSD on pull-backs. Those recommendations were guided based on my analysis of the double-bottom that was formed in this currency pair in the Mar-Apr timeframe. Based on last week’s disappointing price action, whereby prices failed to advance in both Thursday and Friday’s trading sessions (see the inside-day bars), I am starting to shift my bullish trading bias. I am now starting to believe that the “Double-top” formed in Apr-Jun will be the guiding price pattern going forward. Should prices fail to advance from current levels, it will also confirm the potential descending wedge (bear) pattern. (Final confirmation of the descending wedge pattern would be at the 1.0800 price level). Admittedly, last week I was buffeted between the opposing price patterns (double-bottom and double-top) that are currently in play in the EURUSD. As this pair has been in a sustained and long-term downtrend, I am of the (growing) opinion that the double-top price pattern will prevail, and the next (major) move will be a continuation to the downside.