WEEKLY OUTLOOK
Our outlook for EUR and AUD still BEARISH…
Let we analyze from volume, According to COT (commitment of trader) which is released by Commodity Futures Trading Commission in the week ended Tuesday, Net speculative bets, called shorts, against the euro were at 111,945 contracts, compared with the record high of 113,890 set on May 11 2010 and unfortunately their are mostly right.
Based on Japanese dealer, large block order stop loss/ buy stop mostly places at 1.2150-65. Solid move above $1.2150 could see the euro extend to $1.2230 and perhaps to $1.25.
Late Friday three hours before market ended, we closed one sell position of EUR/USD and booked profit only 11 pips because we dont want to speculate through weekend holiday. but We still have one open position @ 1.2042 and let see how is our bet running in coming week. We will Sell another lots if EUR/USD bounce back around 1.2140 for averaging and set very tight stop loss.
And for Aussie Lover, Technically AUD/USD still bearish, our short term target at 0.8150 and stop loss @0.8570, we see strong resistant @0.8550 if it could break, possibly will reach 0.8800
So here is our trading plan:
Keep Selling EUR/USD, stop loss places @ 1.2165 targeting 1.1900
entry point depend on how many pips you can afford to cut your losses, adjust it with how many lots you are comfortable.
IF break 1.2165 we open two buy position, first targeting 100 pips, and let the second lot go for 1.2400
Happy Trading, and May the pips be with you!
Regards,
Ozzy manoach
fx-vineyard.blogspot.com