Why I think the USD will remain depressed for a while......
When you are comparing a 1 hour with a Daily or Weekly chart, then you are not comparing it apples with apples. And that is where many newbies made the fatal mistakes.
From this daily chart, we can see that the price action has finally broke out of the bearish trend line after 12 long years ! Now, this is an important breakout and one must not take it lightly.
By looking at the circled zone and especially if one zoom it down to 1H or 15 mins charts, then you would see very bearish patterns and think this pair is heading south. So, you may take up a position (hopefully a correct one) and short it!
And if you are careful , you would made quite a tidy profits judging from the timeline on the chart.
Currently, we are in one of this circled zone and as usual, there are noises out there saying USD is going up, some says explosively and will bring EURUSD to its knees. I don't think so. Firstly, let's look at the US economy. Job employment is not that rosy ,really. We are no longer talking about billion dollars stimulus but TRILLION dollars this time round. One trillion is 1000 times of a billion. That is the US government is printing 1000 times more just to keep the economy going and avoiding any protests or riots ! Do you think they can downgrade now ?
Only by weakening its currency, ie. USD, the government in a way will pay less for its debts.....
And we are moving from a zero interest rates to sooner or later (imo) a negative interest rates environment. Imagine owing a debt without paying interest plus paying lesser in principal amount, would you then spend more or less ?
So back to the EURUSD chart, so long as the main bullish trend line remains intact, I am still bullish on this pair. Since we do not know when the retraction will end, we need to be patient and monitor the break out .
It is possible that the price continues its short term fall towards 1.1919 and 1.20 level as the next level of support. I hope by then the retraction would end and provides a good opportunity to add more long positions on this pair.
Yes, we are not likely to re-enter into a bear market for this pair as it has already taken 12 long years to break out. Unless the breakout in July 2020 till current is a fake one.... it is possible though imo highly unlikely.....
Once you are able to clearly distinguish the difference between Bear market and retraction and finding a suitable time frame that suits your personality and lifestyle, stick to it. Don't let greed gets in the way......I made this cardinal sin before, going long on daily and thinking I have mastered the chart, I went short on shorter time frame hoping to earn that extra pips....Little did I know the initial wins would have caused me much misery later on..........
Yah, maybe you are able to play on both sides well, though I think such traders are far and few. Stick to what you are good at , hone the skills and share it to someone else.
Wishing all the best in this trade !
From this daily chart, we can see that the price action has finally broke out of the bearish trend line after 12 long years ! Now, this is an important breakout and one must not take it lightly.
By looking at the circled zone and especially if one zoom it down to 1H or 15 mins charts, then you would see very bearish patterns and think this pair is heading south. So, you may take up a position (hopefully a correct one) and short it!
And if you are careful , you would made quite a tidy profits judging from the timeline on the chart.
Currently, we are in one of this circled zone and as usual, there are noises out there saying USD is going up, some says explosively and will bring EURUSD to its knees. I don't think so. Firstly, let's look at the US economy. Job employment is not that rosy ,really. We are no longer talking about billion dollars stimulus but TRILLION dollars this time round. One trillion is 1000 times of a billion. That is the US government is printing 1000 times more just to keep the economy going and avoiding any protests or riots ! Do you think they can downgrade now ?
Only by weakening its currency, ie. USD, the government in a way will pay less for its debts.....
And we are moving from a zero interest rates to sooner or later (imo) a negative interest rates environment. Imagine owing a debt without paying interest plus paying lesser in principal amount, would you then spend more or less ?
So back to the EURUSD chart, so long as the main bullish trend line remains intact, I am still bullish on this pair. Since we do not know when the retraction will end, we need to be patient and monitor the break out .
It is possible that the price continues its short term fall towards 1.1919 and 1.20 level as the next level of support. I hope by then the retraction would end and provides a good opportunity to add more long positions on this pair.
Yes, we are not likely to re-enter into a bear market for this pair as it has already taken 12 long years to break out. Unless the breakout in July 2020 till current is a fake one.... it is possible though imo highly unlikely.....
Once you are able to clearly distinguish the difference between Bear market and retraction and finding a suitable time frame that suits your personality and lifestyle, stick to it. Don't let greed gets in the way......I made this cardinal sin before, going long on daily and thinking I have mastered the chart, I went short on shorter time frame hoping to earn that extra pips....Little did I know the initial wins would have caused me much misery later on..........
Yah, maybe you are able to play on both sides well, though I think such traders are far and few. Stick to what you are good at , hone the skills and share it to someone else.
Wishing all the best in this trade !
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a false breakdown to trap early short sellers only to disappoint with a bullish engulfing candle. We loaded more
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You can see twice the market fools you to sell with false breakdown
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1.216 is a resistance zone it must overcome else we will see price correcting to the bullish trend line
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took partial profits