Longer term perspective on Eur/USD
Updated
There is no RSI divergence on D1 chart really and this indicates the strength of the uptrend. Higher high on D1 was made and RSI did make it higher. The price is above all moving averages and has left strong support belt at 1.14-1.15. There is a slim chance of a pullback down to that level but a more realistic target is 1.1575
If prices does reach 1.14 on retracement then there is a Head & Shoulders pattern emerging which may drag price even lower. Why is this a trivial situation? Because we are at a 12 year downtrend line and if it is broken up - we have Eur/USD finally going into a bigger picture trend change to a bullish. But if Weekly trendline does make a rejection from current levels in the coming weeks - we are facing another long selling in this pair.
That is the reason why caution is required here as we have a 12 year long cycle at play and if your account can hold 500-600 pip drag into negative - do not expect that you may have a chance to close a bad trade at Break even as price here can go 1000 pips without any real retracement.
I have buys from 1.138, 1.166 and 1.1732. With SL at 1.1675 and one with SL at BE and TP at 1.1825
Price has to close above 1.1766 on H1 in order to continue safely on uptrend.
I am not risking any more than that as we have reached the line where we have to wait for the market to show us the direction.
If prices does reach 1.14 on retracement then there is a Head & Shoulders pattern emerging which may drag price even lower. Why is this a trivial situation? Because we are at a 12 year downtrend line and if it is broken up - we have Eur/USD finally going into a bigger picture trend change to a bullish. But if Weekly trendline does make a rejection from current levels in the coming weeks - we are facing another long selling in this pair.
That is the reason why caution is required here as we have a 12 year long cycle at play and if your account can hold 500-600 pip drag into negative - do not expect that you may have a chance to close a bad trade at Break even as price here can go 1000 pips without any real retracement.
I have buys from 1.138, 1.166 and 1.1732. With SL at 1.1675 and one with SL at BE and TP at 1.1825
Price has to close above 1.1766 on H1 in order to continue safely on uptrend.
I am not risking any more than that as we have reached the line where we have to wait for the market to show us the direction.
Trade closed manually
Closed half of the positions at 1.1805 when it kept rejecting it, moved SL to 1.177 for all. Either way - not much left to the upside not worth risking losing good profit.Trade closed: target reached
The rest of my buy positions were closed at 1.1825 as 1.183 has been reached.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.