Insight ll: Preparing for Risk Event: EURO USD CABLE

Based on the current reports so far; which is given so far...what is the best case scenario for the market's reaction. Due diligence is a must for those who would be opt to take a trade/s within the next three-to-four trading days.

Preparing for such an important risk event for traders who prefer to trade the Euro, let alone a combination of trades that would be suitable is what we all need to come up with. During our analysis meeting in preparation taking a stand to absorb market price swings can only be accomplished with comparing price action before any immediate reaction not only on spot prices but relatively with futures volume and open interest and how options are being played out.

This is where the "Principles of Trading a Contagion, Contango and Backwardation Correlated Markets" should be carefully understood. A clear example of MegaTrade101 - CIPHER3 analysis; along with the recent COT report already provided how Euro shorts and US Dollar positions have unwind; where a divergent trend has occurred from previous formations. The 2nd quarter position adjustments and roll-overs would prevail post Greece which would show it true colors by then. Watch for our price calls once Asia starts trading for the week.

The primary trend still prevails in a range bound trading pattern for the Dow Jones with a few exceptions for the USD, EURO and CABLE. These are the pairs to consider when taking on the market at this point. So far the USD top heavy configuration on a tech angle would weigh on any price recovery from persistent bull players that have been encourage from positive USD sentiment reports. Thus, a synchronized price action from the USD and Dow would provide a glimpse prior to the real deal in the making. Take a cue from our previous market approach on 'Price Action Analysis' using a simple yet powerful correlation on the market as defined in Forex Trading Methodology 2 as a due diligence point of reference & analysis during the QE from the FED.