EURUSD Trading Idea
The market made a good up movement and reached the possible reversal zone formed by several resistance levels. We can expect that these levels stop and reverse the market and we'll have down movement to MA20 and the support levels. Now we can see that MACD and DMI confirm up movement. But RSI is in the overbought zone and it will be able to give a solid reversal signal. How we should trade based on this market conditions? If the market reverses from 1.14000 level and we see a bearish candle, it will be a signal that the market is going to move down. We'll need to wait for price reversal confirmation from RSI and MACD histogram. After such signals on the daily chart, we'll be able to open short trades based on sell signals from hourly charts. Stop orders for short trades must be above 1.14000 level and profit target at the daily MA20 and 1.11500 level. As for long trades, we have to wait when market falls to the support levels or MA50 and after getting trading signal we'll be able to buy with profit target near 1.14000 level.
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