Overview: There is an ADP Non-Farm Employment Change report tomorrow at 5:15am PST which is expected to have a high impact on the US Dollar. We all know how unemployment has been recently - the worst the world has seen since the Great Depression. We are also entering the extremes of the range on the Euro and US Dollar, providing a high probability opportunity for a reversal. EU Economic Forecasts will be released at some point tomorrow as well which could accelerate price into our zones.
Analysis: To determine the area of entry I've used a combination of supply and demand analysis, multiple time frames, and candlestick analysis. Candlestick structure was found on the higher time frames, and risk was minimized by finding structure in the lower time frames.
Set Up: This trade will have a risk of $125/contract and potential profit of $468.75/contract. If demand forms as price moves away from our zone, a manual trail stop will be moved below demand zone with a buffer to lock in profits. Target may be moved to let the trade run depending on market conditions tomorrow and if significant demand forms as price leaves zone.
Target: 1.08440
Entry: 1.08065
Stop: 1.07945
If price falls below this zone, there will be a second opportunity for a long entry at 1.07580-1.07390. This should provide an ever greater probability and higher profit potential.
Analysis: To determine the area of entry I've used a combination of supply and demand analysis, multiple time frames, and candlestick analysis. Candlestick structure was found on the higher time frames, and risk was minimized by finding structure in the lower time frames.
Set Up: This trade will have a risk of $125/contract and potential profit of $468.75/contract. If demand forms as price moves away from our zone, a manual trail stop will be moved below demand zone with a buffer to lock in profits. Target may be moved to let the trade run depending on market conditions tomorrow and if significant demand forms as price leaves zone.
Target: 1.08440
Entry: 1.08065
Stop: 1.07945
If price falls below this zone, there will be a second opportunity for a long entry at 1.07580-1.07390. This should provide an ever greater probability and higher profit potential.