The focus is on these two major pairs as the key pivotal and key prices established is well defined in spite of the market's volatility and wild price action from last week's trading. The 1.3345/50 levels for the EURUSD is a major support (S1) at this point of time. We have called a price objective on our 09.27 amrket view analysis at the 1.3180; although the extensions were set at the 1.3144/60 spread that moved last Oct. 03/04 daily price low. Henceforth, the current price levels now at 1.3650 has proven that these key prices to be supportive. A 500 pips move difference from the low from just a week ago.
The correlation on the EURGBP cross at those low prices were registered at the 0.8528/32 levels and a turn around has been seen This prompted our position to be adjusted prior to today's movement. With closing and taking our gains from our previous shorts dated 09.29 as shown on the left hand side and subsequently creating a long prior to today's price action higher has been quite fruitful. As the strategies applied were executed properly as the chart formation on the lower side proved to be quite profitable. And the current price for the EURGBP cross rate is at the 0.8710 as of this writing. As the weekly candlestick from last week's closing pulled back lower from liquidations of positions.
This is an encouraging signal where an inverted hammer resting on the weekly trend line support would be supportive at the early trading of the coming week. Cross trading between the Euro major and the EURGBP cross rate is an applied strategy that may be quite expensive to maintain but the trades and risk factors are well defined whenever an executed trade turns to be positive. However, not all spread trades would result to be a gain. Proper discretion should always be exercised when trading the Forex market.
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