EURUSD Swing/Day Trade Points of Interest

Jul 22, 2013

From a broader perspective this is a mixed market. Price is consolidating near a psychological resistance area of 1.3200 While coming off a higher low of 1.3160 area. Since that has been no fierce sell off yet, this can be taken as a sign of strength. The problem is it has not confirmed with a strong 4 Hr close above 1.3200.

I am looking at this pair in two ways: First since the general price structure is bullish, I am very interested in bullish reversals around the 1.3060 - 1.3025 area. If I can validate a reversal here, I will look for a swing trade long with a stop about 15 pips below the swing low at the time of validation. Initial target would be set to the 1,3250 area.

On the bearish side, I am open to participating in a day trade if the price action can validate somewhere between 1.3189 and 1.3220 area. Remember here the expectation is smaller, that means a tighter stop (just above recent swing high at the time of entry) and a smaller target which would be somewhere around 1.3120s. Since I have a smaller expectation of the short, I will be very sensitive to hesitation and reversal activity when in the trade. You need to be flexible.

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