A month ago my post on the E/U correction highlighted a possible completion of W:a and targeted the W:b zone near 1.0500. This weeks pivots had a W-M1 target near that W:b zone for a possible bottom. As J. Yellen was speaking she mentioned that ‘economic performance has been quite disappointing’ after the decline in an industrial production release for USD just as price was hitting that W:b target zone. It would’ve been difficult to catch that falling knife without a ‘Buy Limit’ order down at the W-M1.

Now What? If price holds above the Feb 15 low, stays above the 55 ma, & the 21-55 macd stays above the ‘0’ line the daily stoch cycle will cycle up while at the same time the monthly stoch is OS. For the time being that means trade plan to buy E/U both technically and fundamentally based on the markets reaction. Notice I have W:c off the chart as a new target zone but its off the chart for a reason, it can take weeks to get there. The M-PP could prove to be tough resistance to break at this time. Of course we’ll see confirmation(s) as the right side of the charts build.

Did anyone trade the W:b target zone? Time to move stop to hero or zero today.

For the curious, you can trade Gold & USD/CHF along with E/U as the correlations are strong currently.

Lets see how it plays.

1 Hour

5 thoughts on “E/U Update 2-16”

  1. Dennis Bacote says:

    Hi James I would like to know what is the name of the indicator all the way at the bottom of your charts, The one that shows the two stochastics, I like the way that your using that it makes things easier. Thank you.

    1. James Mauro says:

      Dennis, yes its a good mental check on a chart. Note, stoch’s can take avg. of several candles on the time frame viewed to cycle so use a 5 ema on the same time frame (which you can’t see on the bottom of the chart) to further confirm a turn is underway on stoch’s, use fractal analysis on lower time frames, and keep in mind that markets are not ideal. Its a multi time frame stoch indicator by ffx I found after searching thru hundreds of indicators under the code base tab in the MT4 terminal. Hope this helps…

      1. Dennis Bacote says:

        Thank you so much now I know what to look for you made my search so much easier. I search the code base a lot

      2. Dennis Bacote says:

        Thank you once again. I found the indicator with your information. I wanted to say thanks again for responding and sharing as fast as you did and to let you know that you helped me stop a very long search, thank you

        1. James Mauro says:

          You’re welcome Dennis, good luck. Keep ‘Time’ in focus on the stoch cycles and use the lower time frame fractals

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