Forex FOREX PRO WEEKLY, May 13 - 17, 2019

[Deltoid88]

Update on EUR. Although EUR continued lower and my primary trading idea did not work, I still expect bullish bounce against 1.1110 lows. My reasons are that many patterns have been completed, and all of them point to upside continuation. Now again doors are open for powerful wave 3 to appear and push EUR above 1.14 level. This trading idea offers great risk/reward ration, and I personally believe that it has very big chance to succeed, although EUR is just going lower and lower. I simply do not believe in further bearish continuation without much more significant bullish correction to upside. I would be very surprised if price breaks 1.1110 lows.

Daily chart: I believe we are on the beginning of wave 3 of blue C wave which is part of correction from fall from highs on 1.2550. I expect that C wave to have 5 waves structure, and most powerful of them could start very soon.

4 H chart:

1 H chart: Here I want to show what structure has final red C wave. It has 5 waves structure in it, and wave 5 has good reasons to be finished since 2 significant extension have been reached on 1.1170 level. If wave 5 is completed that would mean C wave is completed, and that would mean wave 2 is completed so wave 3 could start with much higher volatility. This is the moment where structure of wave 2 really looks finished.

How to trade this?

Long entry in zone =1.117-1.12, SL=1.1109, TP zone = 1.1440-1.174

 

[Sive Morten]

Morning guys,

So, it seems that we were correct on suggestion of muted effect of US/China tariffs on EUR. We've explained our position in detailed already. As a result, this week EUR has failed all attempts to move higher, even on a background of external support, such as S. Munchin comments and moderate statistics...

Currently we still do not see any reasons to change our view and suggest that EUR stands on downward action. Technically we still have valid daily grabber which suggests drop below daily lows. As a result - we could get daily downside butterfly. Our HW pattern was broken down as well, confirming short-term bearish sentiment:

On 4H chart our intraday target stands at 1.1135 - OP of wide AB-CD pattern. COP target has been passed. Also EUR has broken all Fib levels and now stands in free space, coiling around WPS1. Upside action couldn't get started even on a background of engulfing pattern that we've discussed yesterday. Our '222' Buy that we've expected even has not been formed:

As a result of recent drop - our 1H XOP finally has been hit and finalized by butterfly "Buy" pattern. Now some upside reaction is possible, here we could get DRPO "Buy" as well. We do not call to trade it, but it just confirms suggestion on possible upside reaction. Thus, our next setup to watch is upside AB=CD to 1.12 K-area and appearing of "222" Sell pattern.

 

[Omosco]

Thank you so much, Mr Sive, for your daily profitable inputs that have transformed my trading experience.
Sir, do you have any information on reliable Options Brokers? I will be glad if you can help me with some names.

Thanks in advance.

Pato.

 

[Sive Morten]

Thank you so much, Mr Sive, for your daily profitable inputs that have transformed my trading experience.
Sir, do you have any information on reliable Options Brokers? I will be glad if you can help me with some names.

Thanks in advance.

Pato.

Hi mate,
Well, it depends on your account value. If you have at least 50-100K, I recommend to trade currency options on exchange, CME is common choice.
Personally, I've traded options only with SaxoBank, but it was very long time ago (10 years, or even longer) when they were the only retrail broker in EU who offers automatic options quotation. Now there are few of them, especially in EU and they do not demand big amounts on account. But, I can't recommend them, as I have no trading experience with them. Personally I prefer do not make any business with retail brokers and trade currency futures on Exchange market. If you need - let me know, I try to find their websites but again - I do not know the quality of this brokers and can't guarantee that they are white and fluffy.

 

[Omosco]

Hi mate,
Well, it depends on your account value. If you have at least 50-100K, I recommend to trade currency options on exchange, CME is common choice.
Personally, I've traded options only with SaxoBank, but it was very long time ago (10 years, or even longer) when they were the only retrail broker in EU who offers automatic options quotation. Now there are few of them, especially in EU and they do not demand big amounts on account. But, I can't recommend them, as I have no trading experience with them. Personally I prefer do not make any business with retail brokers and trade currency futures on Exchange market. If you need - let me know, I try to find their websites but again - I do not know the quality of this brokers and can't guarantee that they are white and fluffy.

Thanks Sive,
I am very grateful for your candid opinion and suggestions. They are valuable. One of my friends recommended Olymp Trade, I am still weighing the option as it is more profitable for me to trade forex. Thanks a million.