✍️Weekly Trade Plan & Recap 18th - 23rd May
Our Euro Bear trade pays out! Plus analysis for the Dollar Index, EUR/USD, Gold, Silver, Copper, S&P 500, Nasdaq, Bitcoin and Alts.
In past newsletters I predicted a macro Dollar bull move (and conversely, a downward move in the Euro). You can read the reasons for these predictions in last week’s newsletter here.
Given we had a bullish Dollar bias, we were also looking for a short Euro trade and this is the setup I published to members on Friday 9th May.
That trade required a weekend hold and on Monday, 50% profit was scaled after the market dropped 150 pips to 1.1111.
Since then, price has come back and the rest of the trade was taken out at breakeven.
This just goes to show, even though we may have an ultimate price target in mind (in this case, 1.0787), it is always good to pay yourself regular profits, rather than just waiting for “home runs”.
Does this mean we are abandoning the 1.0787 Euro target and not bearish the Euro (bullish the Dollar) anymore?
Let’s take a look at the weekly EUR/USD chart for that answer.
As I have said for the last few weeks, the large Pinbar at the top of the chart (and likewise bottom of the chart for the Dollar) started the move.
Price has now dropped below September’s high and is holding there. In my opinion, that’s a good sign price will continue to the circled zone at 1.0787.
The eagled-eyed amongst you will notice the week closed with an indecisive Doji candle, and while that’s true, we need to dig down to the daily chart to get some more answers…
Here’s the daily chart, and as we can see, price has made a number of rejection wicks into the blue resistance level and purple trendline, giving another sign the Euro could fall lower.
In summary, we’re not finished shorting the Euro yet and I will be calling further short setups in the Substack Chat as and when they happen.
Last Week
Last week was an overall winning week with a partial win on the Euro short, a scratch on a further attempt to short the Euro, a partial win on a Gold long setup and a further small win an a Gold long on Friday.
We’ll look at these setups in detail in the members’ section and also analyse the Dollar Index, EUR/USD, Gold, Silver, Copper, S&P 500, Nasdaq, Bitcoin and Alts.