For the week ahead we are watching for a potential bullish reversal for a swing trade long off of the high 1.070’s or 1.080’s. A bullish pin bar along with some supportive structure (such as a mini-double bottom) would be ideal. Why not just place a buy limit order in advance and just wait to be filled? There is no way to know IF this market will hold the support upon another revisit. If it breaks, a dramatic move lower is likely to follow and there is no reason to get caught in that.
Upon confirmation of a reversal, we will be prompted to share a swing trade long idea. Since we are only interested in short term momentum, we do not consider any economic or fundamental information in our decision-making process. All eyes are on the USD, and it will have to prove which way it wants to go, and until it does, we simply prepare for scenarios and WAIT. It is better to be wrong and miss a move than it is to be wrong and lose money.
This article was written by Marc Principato CMT, Executive Director at Greenbridgeinvesting.com.