EURUSD 12-13-06

12-13-06

EURUSD

There was no new trade in the EURUSD yesterday. The low on the spike candle after the Fed decision was 1.3210 so it miss our entry at 1.3201. Anyone long from the day before should have closed the trade at the first target of 1.3234 using the trailing stop from yesterday's email. The 1.3280 area of supply is looking like a top of the range for now and the EURUSD will either base here to move higher, or it may sell off down to the 1.3250 breakout area. I would want to open a long position if there is a sell off down to that breakout area depending on the type of sell off.
If there is a spike down to the area I would buy near 1.3250. If there is a gradual sell off down to the area, I would buy closer to 1.3240 to give me a better profit zone back to the stage 3 top breakdown area that will form at 1.3270. Depending on the entry, I would use a 10 pip stop loss and a first target on the 1.3240 entry of 1.3270. The next targets will be 1.3300 and 1.3332 to exit and go flat. Move the stop loss to even after the first target and to 1.3264 after the second target. If there is a spike down entry at 1.3250 and a close back inside the range, the first target is 1.3285.