EURUSD 11-19-06

11-19-06

EURUSD

No trades on Friday. The areas of supply between 1.2788 and 1.2840 have been absorbed and the EURUSD is basing between 1.2815 and 1.2830. The first area of supply is near 1.2865. Either the EURUSD will breakout on Sunday or Monday, or it will drift down to the 1.2814 area first.
I would trade long in either case with a first target of 1.2765 to sell one contract. Move the stop to even after the first target. If the EURUSD stalls near the 1.2865 area and falls below 1.2850, close the trade. We will buy the pullback to the 1.2830 breakout area to re-establish the long position.