EG short?
Updated
EG SHORT 01/July/19
My analysis is based 90% on Technicals (TA) and 10% fundamentals.
it's adamant to understand that both parties are in the losing position in regards to the geopolitical turmoil happening inside the EU council and UK parliament, both are losing out. Fundamentally concluding that this pair can swing both ways impulsively, as history dictates.
TA
#EURGBP - daily chart: the price is currently at a descending channels resistance level at 0.89740 (the channel formed since the highest price in August 2017 @0.92470)
RSI showing weakening momentum and also showing signs of divergence (signifies reversal may be due)
Since the impulsive drop from Dec 2018 to the current support level, at the lowest yearly price 0.83521, EURO has been regaining its strength. It looks like it’s due for correction following the rise, AND it’s already made its bearish move with a DAILY ENGULFING candlestick.
BUT, on weekly it’s not clear that the bears have started taking control, we are seeing a bearish evening star, however, weekly bearish price action is needed to confirm. Based on Daily we can speculate a devaluation of EUR in favour of GBP. EURGBP DOWN
SCENARIO:
Short at current price 0.89310
SL 0.9000 just below yearly resistance (retested 4 times) to let room for the trade to ‘breathe’
TP1 (mirror level) 0.88440
TP2 (support/resistance FLIP ZONE) 0.87010
OR
Wait for price to break below hourly resistance 0.89290, with either ENGULFING or other price action, and get in on the retest
OR
Sometimes we can only plan so much, the market moves where it wants to move, so an alternate scenario would be LONG EG if bullish engulfing candle breaks the current daily resistance (doubtful). Get in on the retest
TARGET: min 150 pips up to 500 pips
ESTIMATED TIME: 7-30days
Do you agree? Let's discuss :D
Goodluck
IDEA IS SOLEY FOR EDUCATION AND RECORD KEEPING (USE AT OWN DISCRETION)
My analysis is based 90% on Technicals (TA) and 10% fundamentals.
it's adamant to understand that both parties are in the losing position in regards to the geopolitical turmoil happening inside the EU council and UK parliament, both are losing out. Fundamentally concluding that this pair can swing both ways impulsively, as history dictates.
TA
#EURGBP - daily chart: the price is currently at a descending channels resistance level at 0.89740 (the channel formed since the highest price in August 2017 @0.92470)
RSI showing weakening momentum and also showing signs of divergence (signifies reversal may be due)
Since the impulsive drop from Dec 2018 to the current support level, at the lowest yearly price 0.83521, EURO has been regaining its strength. It looks like it’s due for correction following the rise, AND it’s already made its bearish move with a DAILY ENGULFING candlestick.
BUT, on weekly it’s not clear that the bears have started taking control, we are seeing a bearish evening star, however, weekly bearish price action is needed to confirm. Based on Daily we can speculate a devaluation of EUR in favour of GBP. EURGBP DOWN
SCENARIO:
Short at current price 0.89310
SL 0.9000 just below yearly resistance (retested 4 times) to let room for the trade to ‘breathe’
TP1 (mirror level) 0.88440
TP2 (support/resistance FLIP ZONE) 0.87010
OR
Wait for price to break below hourly resistance 0.89290, with either ENGULFING or other price action, and get in on the retest
OR
Sometimes we can only plan so much, the market moves where it wants to move, so an alternate scenario would be LONG EG if bullish engulfing candle breaks the current daily resistance (doubtful). Get in on the retest
TARGET: min 150 pips up to 500 pips
ESTIMATED TIME: 7-30days
Do you agree? Let's discuss :D
Goodluck
IDEA IS SOLEY FOR EDUCATION AND RECORD KEEPING (USE AT OWN DISCRETION)
Trade active
Showing bearish signs, coming week is big for the FX market as FED is expected to announce their move which can cause volatility, be cautious of invalidated trade if you're entering more conservatively!Trade closed manually
Got out
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