Not sure where we stand with EUR/USD? Here's some direction.
We are currently at a strong resistance point at the 1.167 area. By now you should have planted some sell positions on this currency pair. From this point we are looking to harvest our crop when price reaches the 1.0900 area. That's a nice 800 pip profit approximately.
We must remember that the market does some crazy things some time and can turn on us. So what I recommend to the people that are about to enter Sell positions on this... Keep your leverage low enough that it will be able to withstand an unexpected rise to the next resistance.
I personally do not think price will go up to the next resistance point just yet... This pair is extremely over bought. Nevertheless, we hope for the best and prepare for the worst.
Another thing to keep in mind is the FOMC Statement this coming Wednesday and the Federal Funds rate as well. I think that those announcement might fall hand in hand with this analysis. So, the news will either ensure our resistance point and send us down to our Take Profit point at 1.0900, or it will work against us and send us up to the next resistance point at 1.2150.
The trading approach I like to use is a contrarian style. I plant my positions at resistance or support points that are highly likely to work, but we must plan for unexpected events. Nothing is ever a sure thing in this line of work. The best thing we can do is protect ourselves with low leverage!
Once again, thank you for reading and I hope this map helps you find some direction.
