Trader and author Raghee Horner of Interbank FX talks about an intraday setup on the EUR/USD.
Although this setup occurred a few hours earlier, it still nonetheless is a great example of an intraday swing setup, utilising support/resistance, moving averages and of course, fibonacci.
Raghee mentions, “The trends on the intraday time frames were mixed earlier in the trading session as prices indicated a mark up cycle on the 60-minute chart while the 15-minute was transitioning to a downtrend. Since the transition was new and the 60-minute chart had an established uptrend, the first trade I was looking for was a bounce off the 1.2900 level. I believe this level was strong for two reasons, first it’s a major psychological level and it was just six pips below the support of the 34 period EMA high at the time.”
The chart below shows not only where resistance may be waiting (161.8 and 186.6) but also where the downside support levels could create a bounce. These support levels can also be used as downside targets after a swing entry short is taken.
For Raghee’s entire explanation, visit:
http://www.ibfx.com/Corporate/post/2010/05/10/EURUSD-Intraday-Downtrend-Swing-Set-Up.aspx
