Weekly Trend direction: Bullish

Weekly trend reversal level: 1.3440

Key G7 support levels: 1.3600, 1.3540/70, 1.3500

Counter-trend opportunities:

Strategy: Whilst above the weekly trend reversal level buy dips to support levels after an entry signal.

Today’s trade suggestion:
Another weekly “doji” candle and an “insider” candle mean that the probabilities have shifted towards a bullish week for the euro this week, and perhaps even a medium term bottom. We shall have to wait and see. In the meantime, I’m now looking to buy dips whilst we are above the weekly reversal level at 1.3440. As I write, we treat first support at the key 1.3600 level, which also happens to be a confluence of S/R, the 38% retracement level and the 200EMA. This gives a high probability trade, but more importantly, a tight stop loss and a decent target.
Look to buy here, stops below 1.3590, for a target of at least 1.3700. If support at 1.3600 fails, then I’ll be looking to buy lower down at 1.3540/70 or 1.3500. Although this is a good setup, be aware that market turning points can take a while to “solidify” and we may still get a lot of movement between 1.3600 and 1.3400 for the next week or so.

Summary:
Buy dips to support after a clear G7 signal. Short term target 1.3700.