Wednesday February 3, 2010 - 15:56:14 GMT
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FXTimes: EUR/USD Countertrend Breakout; Risk Assessment
Daily Technical Update
February 3, 2010
EUR/USD Countertrend Breakout; Risk Assessment
- 4H: I was stalking the EUR/USDâ€™s slow ascent since
the start of the week, which is a counter-trend rally. In other words,
the bearish outlook to 1.37 remained. (Refer to Daily Video Technical Update 2.1.2010).
- The rally was stopped after the pair broke the declining short-term
trendline. However, the 1.420/30 powerline proved to be resistance
after broken as support in the last swing.
- 1H: The 3 ATR stop placement would be near 1.41,
while trigger was a very strong bearish candle that broke the near-term
trendline. With a target at 1.37, the reward to risk ratio is approx:
250:150 or 1.67:1 (not bad, not great).
- Daily: Despite the mediocre reward to risk ratio,
the bearish outlook holds potential of further decline to the 61.8%
retracement area, which is 1.35. This is a very aggressive target, but
would yield a 3:1.
Commodity Trading Advisor
Information and opinions contained in this report are for
educational purposes only and do not constitute an investment advice.
While the information contained herein was obtained from sources
believed to be reliable, author does not guarantee its accuracy or
completeness. CMS will not accept liability for any loss of profit or
damage which may arise directly, indirectly or consequently from use of
or reliance on the trading set-ups or any accompanying chart analyses.
Foreign currency trading is not conducted on an exchange. CMS is
acting as a counterparty to its clientsâ€™ transactions and as a result,
CMSâ€™ interests may be in conflict with its clients. Since CMS acts as
the buyer or seller in the transaction one should carefully evaluate
any trade recommendation provided by CMS or any of its solicitors.
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not be suitable for all investors.
All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
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