Hey Traders,
This is my take on EUR/USD and my first analysis here where I try to show some of the tools I use to trade and make Market Predictions with as much Accuracy as possible. Feel free to comment and follow me if you like what you see and want more of it :)
Ok, here we go:..
1.
We have a rejection of the Big Confluence Area I marked on the Chart (these Areas usually dont get hit when they work because of High Frequency Trading that is going on today)
2. The move started right after a bullish Grabber was formed on the MACDP line of the 4h chart, this told me that a breakout of the channel would be a high chance!!
3. The minimum Target would be COP at 1.125, this would also be Daily Overbought level and it would form the right shoulder of a H+S Pattern that could lead to further action, but more to that later.
How should we play it?
I would not jump in right at market open but look for smaller retracements on lower TFs, in fact I would and will try to enter long at a level that will most likely get cleared out before we move, something like a low where stops should be or a retest of the Downchannel.
Your stop in any case would need to go below the bullish Grabber on 4H Chart!!
Enjoy and lets make some pips :)
One warning, should this setup fail, dont expect the fib levels at 10.2 - 1.105 to hold for long, as accroding to my experience this is already bounce from that level. Today they get frontrunned a lot when they hold and when they get hit, it almost certainly means they will break and stops below get collected!!
Ok, now a happy weekend to all