DownRiverTrader
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EURUSD did close down today about 55 points toward our River Level as anticipated in the analysis from yesterday. If you followed the trading recommendation, you should be short out of the 3386 level.
Remember that this is a countertrend move with longer term value pointing to higher levels near the 1.4400 level. I want to emphasize that you should review the price distribution analysis update for this pair. It is very important to have a broader veiw as we head towards the end of the month.
So what now?
I indicated that we would see stalling from demand at Zone +1 3353 level and we did. You will recall that this area was our long term target on our recent longs. We want to now use this key level as an upward guage for any near term continued strength. A strong move through this area and you should cover shorts.
If you are short, stay short and continue to look for a downward test of the River Level which comes in today at 3271. I recommend covering shorts at this level. This would represent approximately 115 points on our countertrend trade. The River Level should help indicate the next directional move.
Normally, I would recommend that longs be established at this level on the test. I would recommend that we be patient if this area is tested and watch for the next clue on this occassion as I do I do see a possibility that we may continue to trade down to the Transition Level at 3132. If given the opportunity, traders who did not establish shorts yesterday can look to set shorts on a retest of the 3353 Level today and follow the recommendation above.
SHORT TERM NEUTRAL UNTIL RIVER IS RESOLVED
Remember that this is a countertrend move with longer term value pointing to higher levels near the 1.4400 level. I want to emphasize that you should review the price distribution analysis update for this pair. It is very important to have a broader veiw as we head towards the end of the month.
So what now?
I indicated that we would see stalling from demand at Zone +1 3353 level and we did. You will recall that this area was our long term target on our recent longs. We want to now use this key level as an upward guage for any near term continued strength. A strong move through this area and you should cover shorts.
If you are short, stay short and continue to look for a downward test of the River Level which comes in today at 3271. I recommend covering shorts at this level. This would represent approximately 115 points on our countertrend trade. The River Level should help indicate the next directional move.
Normally, I would recommend that longs be established at this level on the test. I would recommend that we be patient if this area is tested and watch for the next clue on this occassion as I do I do see a possibility that we may continue to trade down to the Transition Level at 3132. If given the opportunity, traders who did not establish shorts yesterday can look to set shorts on a retest of the 3353 Level today and follow the recommendation above.
SHORT TERM NEUTRAL UNTIL RIVER IS RESOLVED
