Long

[EURUSD] 2-year trading plan

Updated

We've finally recovered from the crash that lead to the price plummeting through the 20-year-long support price.

Next, we return to the 7-year-long trend.

In a perfect world, we'd wait for the price to drop back down to ~1.0400 before opening a long position.

We might just see the USD market thrive (or, in the very least, perform a little less poorly) during the 23/24 recession.

Good luck out there.

Note

By further cluttering up our chart, the upwards trending range is revealed to us.

This could fluctuate depending on the speed of economic recovery (or just resilience) within the US.

Note

If we look into the past and find similar circumstances, where the price pair had declined severely, "bounced", and recovered, we find at least half a dozen cases.
However, May 2015 is special in that it's almost identical to Oct/Nov 2022.

Here we see the typical "bounce" pattern, when the price hits the floor, bounces (twice) and reverses. When we overlay May 2015 with Oct/Nov 2022, we can see the similarities - both times the price "staggered" before hitting the floor, bouncing twice, and reversing.

What happens during the reversal, however, is the important part. During May 2015 we can see that the price sharply readjusts downwards before gradually trending upwards for the next few years.

In Oct/Nov 2022 though, we see a strong, consistent upwards trend.

The Euro might just make an historic recovery over the greenback.

Note

And now to predict the future...

Here's January.

Note

We'll see what the new year and fundamentals bring on Tuesday and Wednesday.

Happy New year in advance to everyone who sees this.
May your TP's be far and stop losses be tight.

Chris4XTrading

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