Game Plan: 08/11/12

Market:  Eurex EURO STOXX 50 Index Futures, $FESX_F

Trading Levels:  2480/2530

Target:  2430

Yesterday move give us  room for manoeuvre our shot position , at this time we face with the question: hold or fold?

As per our Morning Meeting the news coming from Europe are encouraging, but the problem is still there and it looks like time is almost over for Europe.

The 2440 target is really important to us, it will be the first real test for the market to show the cards, it represents the base of a 2 months range and therefore quite interesting to study.

Before reaching the target the future has to be able to overcome the 2480/70  support, it will not be an easy task, due to the fact that the market players could be on the sideline waiting for mister Draghi before taking any sort of trading decision.

Buying pressure is expected in the fist part of the European morning session as investors digest the Greek vote. The up-move could reach the 2510/2530 level.

Bear in mind a trade is not booked until it's closed.

The closing signal could come from the Eur/$ where the 1.2775$ breakout could drive the common currency toward the upside of the range to  1.2825$.

We need to keep an eye on risk on/ risk off signals coming from the following currency pairs which can increase our “probability” to correctly time our exit.

AUDUSD, $AUDUSD

Aussie pushed higher then pulled back to its previous range providing an interesting reversal signal. T1 falls within the previous range low with T3 coming in by previous month lows.

USDCHF,$USDCHF

Strong rejection of the 200 day moving average and pivot high. Signal points to further dollar strength and benefits.

Originally posted at www.77sigmatrading.com