European Vacation: June Euro Currency Futures

June Euro Currency Futures

The recent decimation of the once beloved Euro Currency has appeared to me to have reached a major inflection point. There are numerous geometric lines from different angles converging right in this area along with multiple time frame momentum divergent signals. I believe this would be a favorable location to establish a long call strategy. This is a good way to have a built in stop loss rather than attempt to pick a low implementing futures. That to me is a daunting and frustrating task. I am not saying that this is the dead low of the decent but rather that it presents a favorable risk to reward setup. I would lean to the purchase of the June 1.19 call currently priced at .57. My first projection target comes in at 1.20.20 which would put the call at roughly 1.25 , depending on the affect of time decay. My extended projection zone rest overhead at +/- 1.22. The calls should price out over 2.00 were this to play out. Should the futures fail to hold up I would dump the position below 1.1750. The use of a stop loss level increases the potential payoff to somewhere between 5 and 10 to 1.

My analytical breakdown focuses on a blend of wave pattern recognition, long and short term geometrical extensions and momentum signal interpretation. Please feel free to contact me at Walsh Trading to discuss my insights into this or any market of your interest.