From yesterday afternoon’s nasty extension (my correctly defined word), EUR/USD from 1.1234 saw 1.1171 lows, EUR/CAD saw 1.4753 lows from 1.4930’s. My assumption is anyone caught yesterday is now not only in profits but hopefully smart ones took on additional shorts to earn further profits. Extensions are nasty market moves but never worry, I have it covered. My feeling is NZD caused the extension since an interest rate adjustment means all currency prices must re adjust. I’m working on a currency price post for interested as well as inclusion to explain in depth what we are doing here in our trades so to bring understanding. Most important is continued profits always and never, never a loss. Extensions are one reason why stop losses are traps. Stops are not ever needed. They say I don’t know what I’m doing, I don’t understand, I’m scared and what if scenarios that brings the mind to depths where it doesn’t belong.
EUR/USD. Bottom. 1.1129. Range break above 1.1275, Below 1.1073. Overbought sell point 1.1250. Failure point 1.1219. Strategy. Longs above 1.1185, Target 1.1250. Then reverse short to 1.1217. At 1.1219 then short to 1.1202. What’s driving prices is middle aspects to this curve because ranges in the mid section are wide. I saw this coming 2 days ago in EUR/CAD but now I see it melded into EUR/USD. Points on the way up, 1.1191, 1.1219, 1.1234, 1.1240, 1.1250, Extensions in case 1.1264, 1.1279, and 1.1309 if weirdness hits. Very doubtful.
Shorts below 1.1184, target 1.1156. Watch here for reversal to 1.1184. Continuation then points on the way down, 1.1181, 1.1173, 1.1159, 1.1143, Bottom 1.1128. Point 1.1156 must cross to go higher to target 1.1184.
Brian Twomey Inside the Currency Market, btwomey.com