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Contributors Top Trade Idea For March 16th & 17th – EUR/USD

vinsonWhile ongoing searches for the missing passengers of flight MH370 are still underway in hope for some clearer answers to what exactly had happened, additionally issues revolving the cunning play of Russian power in Crimea, Ukraine as well as the underperformances of stock prices in the emerging markets, has not settled either. As a result, traders could be wondering whether the effect of ongoing fundamental or news factors together with global geopolitical events are brewing the start or even the end of rallies or simply hint the continuity of corrections.

Trading this week could prove challenging since the past weeks were undoubtedly intense so a rollover of uncertainties causing potentially a turn of more drama are expected to persist. Despite what is seen as a total catastrophe in some countries with fingers pointing at presumably dirty politicians especially, traders are maintaining their alertness on instruments that may experience a sudden jump in its’ volatility before riding along the trend and in saying that, the Euro maybe an interesting one to look at this week as elaborated below.

Screen Shot 2014-03-16 at 2.41.47 PM

As seen above, the EUR/USD has benefited from a 200 pips gain since the beginning of March and closed at 1.3912 as of last Friday. From a Harmonic trader’s point of view, a clear ‘W’ type pattern is seen and as indicated above on the daily chart. Prices are expected to be progressing upwards from point C to D with a short term target at anywhere between 1.3925 to 1.4100 area. However, if the bullish trend does continue, then prices would be reaching higher but contained within the PRZ zone marked by the blue rectangular box. In addition to the ‘W’ pattern, an ABCD pattern as illustrated above may increase the probability for prices to move upwards signaling the bullish momentum of the Euro at for now and even for the longer term based on the daily chart before making a downwards turn. As of market opening on Monday, an ideal entry would be best only if prices were to travel above the 1.3925 area so 1.3930 be ideal or to be conservative, the 1.3955 or 1.3960 level be a less risky approach.

Happy Pipping !

About Kenny Simon

kennysimonKenny Simon is Head of FX Training and the Asian Markets at Vinson Financials (https://www.vinsonfinancials.com). He is a contributor for the Educational and Technical Analysis section of several reputable websites. Being a fan of the wonders of nature, he  believes that trading in-harmony with the market’s natural ebb and flow could potentially increase one’s success in obtaining Low Risk, High Probability Trades. Besides the technical aspects of his analysis, Kenny emphasizes the importance of understanding and applying Fundamental Analysis, Money & Emotions Management into one’s approach to trading the markets.

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