EURUSD TDV Trade Log – Swing Long Plan
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Trade Setup Overview:
- Instrument: EURUSD
- Entry Zone: 0.5 Monthly Fair Value Gap (FVG), which aligns with the Weekly FVG.
- Technical Confluences:
- Both the Monthly and Weekly FVG levels exhibit bullish signals.
- Weekly RSI is in oversold or "deep waters," indicating potential upward momentum.
- Risk Management:
- My personal risk: 4% (highly aggressive and not financial advice).
- Recommended risk: Adjust to your own risk tolerance—always prioritize capital preservation.
- Risk-Reward Ratio (RRR): 1:2
- Stop-Loss: Below the lower boundary of the FVG.
- Take-Profit: Double the distance of the stop-loss.
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Macro Analysis Supporting This Swing Long:
1. US Interest Rate Dynamics:
- Recent Federal Reserve projections have suggested higher-for-longer rates, leading to USD strength.
- However, the shock effect of these projections appears to be diminishing, signaling potential stabilization or reversal in USD strength.
- Market sentiment suggests that the economic impact of elevated rates may start weighing on the USD as growth prospects taper.
2. Eurozone Economic Factors:
- Despite economic struggles, the ECB has hinted at maintaining relatively tight policy, providing a degree of support for the EUR.
- Any positive surprise in Eurozone data could act as a catalyst for a EURUSD recovery.
3. Technical Alignment with Macro Themes:
- The confluence of the Monthly and Weekly FVGs signals robust technical support zones.
- Bullish signals from these levels align with the potential macroeconomic reversal in USD strength, creating a favorable environment for a swing long.
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Personal Notes:
This trade aligns with both the technical framework of my system and macroeconomic insights. The key is discipline—if the setup invalidates (e.g., price action breaks below critical levels), do not force the trade. Always stay within your risk parameters, and remember this is not financial advice.
Good luck and trade safely!