EUR/USD: Double-Top at 1.5900 will Hold the Bulls?

Sunday, April 6, 2008

EUR/USD: Double-Top at 1.5900 will Hold the Bulls?

Daily Chart

04-Hour Chart

(CLICK ON THE CHART TO ENLARGE IT)
Eur/Usd is clearly bullish, still trapped inside a bullish channel at dailies and at 04-Hour charts (see the blue lines on both charts for this channel). The Double-Top at 1.5900 price zone is a very strong indication of a new bearish trend or at least a considerable retracement. But last Us Unemployment rate at 5.10% released last Friday April 04th favours the EUR against the USD, thus bullish to the Euro. Well, I don´t have to say that I have contradictory signals here, thus some precaution is required next week.
I have several entry points for Long and Short. I will only mention the most significant ones, as below:
## SELL break 1.5680 with STOP 1.5710 and LIMITS 1.5645, 1.5620 and 1.5580.
## BUY break 1.5765 with STOP 1.5725 and LIMIT 1.5860.

TRADING STYLE

Even though we are considered Day-Traders, our trading sometimes requires different styles, according to the patterns and/or how the market moves during our trading sessions. All strategies presented in all posts below are for Positioning but, depending on how markets behave, our style can change so that we can capture good trading opportunities......

Our Trading Styles are discriminated as below:

1) Scalping: Short-term trades, usually betwen 2 to 15 minutes, with stops lower than 8 pips, targeting 15 pips. Generally our Scalping trades apply very low stops (5 pips) aiming quick surges in prices of around 10 pips, in a matter of a very few minutes.................................................................................................
2) Day-Trading: this is our main Trading Style where we dedicate most of our time. Their lenght is usually betwen 10 to 60 minutes, sometimes for more than 2 hours, with stops between 10 and 20 pips and targets between 20 and 60 pips...
3) Positioning: Long-Term trades based on Daily and 4-Hour charts, with stops between 20 and 40 pips, targeting minimum 60 pips. Most of these trades have Open Limits......................................................

Money Management

This is a crucial aspect of our trading, considering the different styles we apply to our trading Sessions. As the Positioning Style requires larger stops (usually the double of our Day-Trading Style), their lot size is lower than usual, generally 50% of our standard lot size. As the Scalping style requires lower stops (usually half of our Day-Trading style), their lot size is usually 150% of our standard lot size. For instance: let´s suppose that our current standard lot size is 200K. For Scalping trades the lot size will be 300K and for Positioning it will be 100K...................................

Daily FOREX Analysis - Brasil

Sunday, April 6, 2008

EUR/USD: Double-Top at 1.5900 will Hold the Bulls?

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