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February 13, 2017 | $EUR/USD – Euro/Dollar Crossrate (Last:1.05933)

Rick Ackerman

Rick Ackerman is the editor of Rick’s Picks, an online service geared to traders of stocks, options, index futures and commodities. His detailed trading strategies have appeared since the early 1990s in Black Box Forecasts, a newsletter he founded that originally was geared to professional option traders. Barron’s once labeled him an “intrepid trader” in a headline that alluded to his key role in solving a notorious pill-tampering case. He received a $200,000 reward when a conviction resulted, and the story was retold on TV’s FBI: The Untold Story. His professional background includes 12 years as a market maker in the pits of the Pacific Coast Exchange, three as an investigator with renowned San Francisco private eye Hal Lipset, seven as a reporter and newspaper editor, three as a columnist for the Sunday San Francisco Examiner, and two decades as a contributor to publications ranging from Barron’s to The Antiquarian Bookman to Fleet Street Letter and Utne Reader.

Banksters and others with a stake in the euro shouldn’t get their hopes too high, since the long-term charts point unambiguously to a target just below 82 cents (see inset). There will be rallies, of course, since sellers have been piling onto this no-brainer trade in such preponderance that there will occasionally be no one left to sell. That would appear to have been the case until very recently, two months into a dead-cat bounce that actually tripped a ‘mechanical’ short-sale signal when it hit the green line two weeks ago. A stop-loss at 1.17121 would ordinarily be required for this type of entry, but I’d recommend lowering to 1.12990, since a print at that price would turn the weekly chart bullishly impulsive. There will also be an enticing play at the red line, a midpoint Hidden Pivot support where the odds will favor a precisely tradable bounce.  I’ll keep an open mind if I see uptrending abc patterns of minor degree start to exceed their ‘d’ targets. In the meantime, with Marine LePen looking like a shoe-on to become France’s next president, it is probably safe to treat any rally in the euro, especially a protracted one, as an opportunity to get short.

 

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February 13th, 2017

Posted In: Rick's Picks

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