After the previous 3 weeks of bullish havoc, the bears may have finally decided to pump the breaks on EUR/USD buyers.
As price continued to push higher, I held on to short positions that I began building up at 1.0851 & 1.0909 as I wanted to wait and see if the Pivot level R1 area (1.0935) was going to provide the wall to begin declining back down.
Once I saw the lack of advancement, I opened another strong short position at 1.0912 and now sitting at an overall average price of 1.0891.
I like this trade, however I am still staying cautious on that 1.0800 level. I want to see this price point clearly broken and trading below it, otherwise I will keep my stop at a close break-even point for risk protection. Overall, so far so good but we need to break through 1.0800.
From a purely technical analysis point of view, I see a small scale rising broadening pattern and this usually indicates a drop to the starting point of the pattern will take place however, If we drop aggressively, I may eye that 1.0600 level again which will lock in almost 300 pips but as I just said, these patterns usually return to their starting point so 1.0300 or below is not out of the question. I guess it depends on how the price action is looking whether I'd close or hold.
1.0600 is around the yearly pivot point so that is a good marker to shoot for IMO. Interestingly, the MACD and RSI show a rising broadening pattern as well so that gives me a little bit more conviction in this trade.
I see some other markers for this trade as well but I will share that in my next upcoming market preview video since it'd be too much to type.
As always, Good Luck & Trade Safe
As price continued to push higher, I held on to short positions that I began building up at 1.0851 & 1.0909 as I wanted to wait and see if the Pivot level R1 area (1.0935) was going to provide the wall to begin declining back down.
Once I saw the lack of advancement, I opened another strong short position at 1.0912 and now sitting at an overall average price of 1.0891.
I like this trade, however I am still staying cautious on that 1.0800 level. I want to see this price point clearly broken and trading below it, otherwise I will keep my stop at a close break-even point for risk protection. Overall, so far so good but we need to break through 1.0800.
From a purely technical analysis point of view, I see a small scale rising broadening pattern and this usually indicates a drop to the starting point of the pattern will take place however, If we drop aggressively, I may eye that 1.0600 level again which will lock in almost 300 pips but as I just said, these patterns usually return to their starting point so 1.0300 or below is not out of the question. I guess it depends on how the price action is looking whether I'd close or hold.
1.0600 is around the yearly pivot point so that is a good marker to shoot for IMO. Interestingly, the MACD and RSI show a rising broadening pattern as well so that gives me a little bit more conviction in this trade.
I see some other markers for this trade as well but I will share that in my next upcoming market preview video since it'd be too much to type.
As always, Good Luck & Trade Safe
•NYC Trader since 2008
•Need Help Trading? internaltrader.com/helptrading
•Need Help Trading? internaltrader.com/helptrading
Related publications
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.
•NYC Trader since 2008
•Need Help Trading? internaltrader.com/helptrading
•Need Help Trading? internaltrader.com/helptrading
Related publications
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.