June Euro Dollar Futures
The tittle of this article is not meant to antagonize anyone but rather to describe the possible structural characteristic of the euro dollar futures market. Following a rather robust and boastful impulsive advance that reached the breakdown point of a the previous dominant B wave triangle release level the contract has appeared to me to have reached the major projection target. Since the high of 1.25795 posted in February the futures have fallen into a sideways range which has the potential to quickly break out in either direction. There are two possible scenarios playing out. If one were to respect the most recent trend (up) the action could be labeled a b wave triangle destine to surge to yet another yearly high. I personally do not favor this interpretation. In my opinion the contract looks vulnerable to break down below the critical 1.2300 level which in my interpretation would open the door for a rug pull release to roughly 121. When I analyze the price action of roughly the last two months I can almost clearly identify an inner bearish head and shoulders pattern. A crack of the 1.23000 neckline support level could trigger an extended follow through to the next cross zone support level which ironically convergences with the projection price target at +/- 1.210. I contend that any staggered advance to +/- 123.70 be shorted with a stop place above 1.2395. With a target projection coming in at the previously identified 1.21 level one would have the potential to capture a 10 to 1 risk to reward . Please feel free to contact me at Walsh Trading to discuss this and other strategies to take advantage his and our other market insights playing out.
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