Is EURUSD 1.10 on the market’s radar?
I was sitting in front of my platform on Tuesday when I heard Newsquawkâs audio squawk that a major German bank forecast the EURUSD at 1.10.
EURUSD, which was already bid on the day, seemed to get a further lift above 1.06 ollowing this headline. .
While I take such forecasts with a grain of salt, it got me looking at longer term Amazing Trader charts to see what the big players are looking at.
Why did I mention The Amazing Trader (AT)?
AT is a real time charting algo that I created seberal years ago (and has since evolved further). Trying to be modest, I took my uncanny ability to identify key chart levels and programmed the logic to create AT.
But this is just part of the story. I soon recognized that ATâs trading lines form patterns that repeat in all time frames and with any instrument a broker offers on its MT4 platform. I then developed a strategy to trade these patterns.
What does AT show for the EURUSD?
EURUSD WEEKLY (AMAZING TRADER) CHART
As this weekly AT chart shows, rising red AT lines indicate momentum is on the upside. This is referred to as a ladder pattern.
On the upside, 1.0630 is the key AT chart level. The move above it is a breakout that confirms the end of the longer-term downtrend and shifts to an uptrend.
Above 1.0630 exposes a risk for 1.0936, pretty close to that 1.10 forecast.
On the downside, only back below 1.0630 would slow the risk, Expect a buy on dips mode as long as trade is above it.
Remember that while most of us do not trade using weekly charts, it is a good starting point in identifying the broader trends and what I call game changer chart levels (e.g. 1.0630)
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