Trade view /
07 June 2016 at 7:08 GMT
I sold some EURCHF yesterday and have set a limit order to sell again into any rallies today. Here is why:
The weekly chart highlights the cross grinding higher from the sharp selloff in January 2015. The chart has made higher highs and lows but now looks to be stalling. On the week May 16, we posted a Demark exhaustion 13 count. This highlights that we are at least due a correction lower.
Weekly - DeMark exhaustion 13
The daily chart highlights the cross breaking the neckline of a bearish Head and Shoulders formation. RSI (relative strength index) has broken the 50-line and is trending lower.
Daily - Head and Shoulders breaking
Yesterday’s POC (Point of Control – Market Profile) is at 1.1055. Bespoke resistance is at 1.1054. Yesterday’s Marabuzo level is at 1.1053. This is our ideal zone to get short. If we see an earlier trigger we will update.
Four Hour - Prime short entry is 1.1050
The measured move target is at 1.0920. With a stop at 1.1085 this offers a good risk/reward trade today.
Management and risk description
selling at 1.1050.
— Edited by Martin O'Rourke
Non-independent investment research disclaimer applies. Read more