Let's get Technical, Technical, I wanna get Technical, let's get into Technical Let me hear the EURO talk, The EURO Talk, let me The EURO TALK

With this AM's news the Euro took a 60 PIP spike on a little bad news from the ISM Non-Manufacturing PMI which is still falling off from a steady 55.4 in April, May and June to 53.8. [ NOTE that the forecast has been adjusted back to 55.4 each of the last 3 months.]

I have stayed silent since we have the USD holiday, Kick off of USD summer, the Gulf crisis and inaction of US Government to come up with a true plan of action.

While the USD breakout was for 1.2600, and a confirmation signal was had  1.2608, I am happy to wait on the side lines to let the news settle out.  

In the mean time we can have a look at Vampire Trading Network, Inc. Technicals that we teach to see what will possible happen in the near suture for the EURO.

We have broken last weeks High and are currently testing 1.2638/52 to move on.

From the chart we can see the retracement could not break through the 23.6 minor Fibonacci support.

Looking at the Weekly chart using the Vampire Trading Network, Inc. Trigger Indicator, which is a modified Bollinger available to Subscribers, we see we have about 150 PIPs to  a bounce off the upper band.  One of our strategies,  THE AUTUMN, named for the colors associated with the indicator, is dependent on the high probability of the currency meeting with this resistance in order to signal the consolidation on that time frame.  

We can see that we have about 150 PIPs to the long side for this week.  Totally doable within the next couple of days.

Addendum: 7/7/2010
NOTE: The Weekly Trigger is moving down at 200 PIPs a week, this means that our movement might be completed.  Caution above 1.2650

Once the trigger indicator consolidates giving us the proper formation we can give a good indication of where the next month or more will likely take us.

Notice also how the the support lines are now giving us resistance; thus we could possibly see a break above 1.2800 to 1.2838. 

As of 11 AM EDT the Daily EURO has hit its first target of 1.2645. 

Note the second target being 1.2789,  This is significantly close to the Bobanacci numbers, named after my mentor and partner Dr. Bob Gube-Zitrin.  [BLOG: Dr. Bob's FOREX Trade Signals]  These are typically Support Resistance numbers that should be obeyed as targets when taking profit at

...12 ...38 ...62 ...88

It is now 11:17 EDT and on the 4 Hour we have hit our second target.  If you have been following this blog for the last 3 weeks you would see immediately that we would have set up this trade with the following parameters (NOTE given the holiday and SAR's this was NOT a good probability trade do to  low volume and instability but the power of Vampire Trading Network, Inc. technicals is clearly demonstrated.

Entry: 1.2576 - 1.2590

1st Target profit: 1.2612 (Bobanacci)

2nd Target profit: 1.2651

3rd Target: 1.2688 (Bobanacci)

Outside: 1.2700 (Natural Resistance)

Coming up on 11:30 EDT we added the Vampire Trading Network, Inc. Primary Indicator.  this indicator shows that at the moment the 4 Hour is still consolidating as noted by the white  Bollinger bands still collapsing or pinching.  When this indicator shows an expansion, you know that the currency is in a good (large) trend move toward its 1st and 2nd targets.  

This is why I am currently patiently not emotionally entering into this trade.  If I miss it, I know I can catch the next trend in a few days or next week.  The big point is to time your trades so that you are trading with the highest possible probability for success.  That is what we teach our subscribers at Vampire Trading Network, Inc.

The predictive accuracy of Vampire Trading Network, indicators increases with the lower time frames.  We can check this out using the 1 Hour.  You can see that even though it was a highly risky fundamentals (news) trade, the Vampire Trading Network, Inc. Trigger Indicator predicted to the PIP where the first resistance would be encountered at 1.2648.

We can now use this as an entry into a day trade long.

Entry window: 1.2629 - 1.2648

1st Target: 1.2678

2nd Target: 1.2728

3rd target: 1.2777

However, as a Vampire Trading Network, Inc. Subscriber would consult your Heat map.. Yes a type of Red Light Green Light However while the upper time frame trend is still long you can readily see that the lower time frames are consolidating since they are now over extended do to the news release.

We don't want to enter at this moment until the Foresight and returns long PROVIDING that the trend weight remains long as well.

Remember that the 4 hour primary is still consolidating, we HAD low volume on USD holiday and we are recovering from a singleton news release.

No Call Wait till post Holiday move

No volume or any impulse to do anything since Friday has been seen. What with the poor USD news and no movement this week, I am inclined to let things sit until resumption close to ATR.

Of caution is the VERY tight SAR.

The Euro is set for a nice breakout out one way or the other.  The VTN Foresight shows the Daily wanting to turn over, Yet the 4 Hour time frame is just now showing a possibility for early week long.  This can easily turn into a bounce and play short since we are on the VTN Foresight oscillator neutral.

I am going to try and get another good night rest.  For me I want to see the lower time-frame Bollinger bands come to a new synchronized pinch.  Notice how the 4 Hour Bollinger is pinching, this needs to complete before the next move will occur.

The Major technical to come into dominance hopefully by the end of the week will be the VTN Trigger on the Daily chart.  Once this completes the consolidation for the Euro will be complete and we can get back to predictive business for the beginning week[s] of July.