Eur/Usd Dollar Testing Last Weeks Low

Friday’s update: Winners Edge Trading
There was no trade on Friday as the market did not give any re-entry points for a short position. I did close to earlier positions for +230 pips each. This week was an excellent week for trading and my students learned a lot about how to use support and resistance levels.

Results for the week: + 585 pips

Monday’s Forecast

The price of the Euro is now touching a double bottom the last downward candle is forming a hammer which indicates that the downward pressure has lost momentum for the short term. On the 4 hr chart the last candle before the close is up off of the lows. I have drawn a fibonacci retracement on the 4hr chart and I expect a pull back up to the 1.300 level before the fall continues.  That would be about the %.50 level on the Fibonacci Retracement and it would also be hitting the downward trend wall I have drawn on my charts.  I am forecasting that the dollar will move up early next week before another plunge. My target is around the 1.2500 level in the next week or two. The negative economic data on the U.S. Economy is helping the dollar gain strength and I do not see that to change anytime soon.

So if next 4hr candle is up I will enter long on the next candle, I have two EMA’s on the chart a 10 day and a 25 day when they cross would be a good entry point long.

If the candle goes down breaking the 1.2762 level I will enter short.

Trade Setup:
open 3 lots
1st lot stop and limit at 55 pips
2nd lot stop at 75 and limit at 100
3rd lot no limit stop at 100 with a trailing stop of 85 pips.

I hope that helps you have some good trading.

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Casey Stubbs is the founder of Winners Edge Trading, which is one of the most widely read forex sites on the web. Winners Edge Trading has trained thousands of people to trade the Forex markets.

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