Good morning traders!
We have barely held the 10650 level and technically this is providing me with an almost perfect risk:reward ratio for a long with stop under 10650 (maybe closer to 10600). I think the chance of success is probably 20% so I am looking for at least a 4:1 return. If I risk 90 points then I am aiming for 350-400 point profit. It’s not the best opportunity given that this market still seems heavy and wants to fall.
I am looking for us to trade sideways, creating a double bottom around the June low, but I am equally happy to sit out and watch it slide for a better entry further down.
The EuroStoxx looks interesting if you consider it’s similarity to the Dax. It generally tends to mirror the Dax quite closely, yet the current level is a long way from the June low, whereas the Dax has pretty much reached it. The EuroStoxx may very wekll look to pick up some of that slack.
I went long EURUSD to ride the rally from the dovish FOMC minutes and am watching GBPUSD for a potential entry too, despite this pair trading sideways from being in stalemate. EURCAD and Oil are the other interesting markets.
So best of luck trading guys, I will be back in a few days!