Hello friends and readers!
I hope you´re feeling good so far this week! Reading the articles of our dear friend The Forex Koala for this week, I have decided to do some trades on AUD/USD and I was able to take some profits on it.
Thank you friend!
For EUR/USD this week we can see narrow prices. Maybe trades are expecting the news yet to be released and hence caused the price to behave without much intensity. Looking at the weekly chart, it is easy to notice three weeks of a bullish trend that started late May and remains until now! Friends in the forum are commenting about bullish trends and some profits on it.
We have a key pivotal area around 1.3050 and a H1 bullish flag formation right above of it as you can see in the chart.
As suggested by Masoud here in his article, http://thegeekknows.com/2013/06/masoud-eurusd-forecast-3-june-13.html, 61.8 @ 1.3114 Fibonacci are our immediate resistance, and we may see a bearish tentative to take control over the market here.
With this in mind let´s draw our lines and plan our trade:
Notice the flag formation on H1 chart! This flag formation is Bullish and we´re going to set our triggers for our trade here.
For a bullish trend, if we see prices above the top of the flag on 61.8 @ 1.3114, the bullish trend may resume and we can set our target to 50.0 @1.3228 Fibonacci for around 110 pips profit.
For a bearish trend, wait for a clear break below our key pivotal area! This means that our bullish flag have failed and may accelerate the bearish momentum. Wait a proper retracement and you can short targeting 1.2950 and below it a retest of 1.28.
Caution folks! Remember that we have some important news this week and is always wise wait the traders to digest it before to trade.
Thank you friends for reading! Be patience and share your thoughts with us in the forum!
Hope everybody end this week on a green!