Looking at EU in more detail:
Weekly: a downtrend is still evident, as the weekly descending trendline (pink) has not been broken by this pair. Additionally, a bigger descending trend indicated by the monthly trendline (black) still stands. Thus, it is safer to look for possible short entries on this pair.
Dropping down to the daily time frame, the, the direction of this pair is clearer. The pair is currently running in a descending channel, as the pair is making consecutive lower lowers (LL) and lower highs (LH) as indicated on the chart below. Thus, short entries are again favoured on this pair
explanation for possible short entry:
1. the weekly key level 1.13250 has remained a strong support level for this pair for a while. Recently however, this key level has stayed a strong resistance level as the pair has failed to close above this level for the past three days.
2. last weeks daily closure closed below the support-turned-resistance level and the long wick on-top of the body is another indication of sellers taking over this market. thus indicating a decrease in upward momentum and a possible short trade set-up coming into play.
3. lastly, My final TP for my previous long entry was 1.13500 marked out by the bubble. But, the previous daily candle stick fell short of this by 56 points (1.13444), thus i manually closed the trade.
Entry explanation:
due to the strong descending trendline that has been obeyed time and time before, there is still a possibility that this pair may continue to the upside, reject the trendline properly before melting, thus my SL, will be slightly bigger in this case (still falling within my R:R plan)
Weekly: a downtrend is still evident, as the weekly descending trendline (pink) has not been broken by this pair. Additionally, a bigger descending trend indicated by the monthly trendline (black) still stands. Thus, it is safer to look for possible short entries on this pair.
Dropping down to the daily time frame, the, the direction of this pair is clearer. The pair is currently running in a descending channel, as the pair is making consecutive lower lowers (LL) and lower highs (LH) as indicated on the chart below. Thus, short entries are again favoured on this pair
explanation for possible short entry:
1. the weekly key level 1.13250 has remained a strong support level for this pair for a while. Recently however, this key level has stayed a strong resistance level as the pair has failed to close above this level for the past three days.
2. last weeks daily closure closed below the support-turned-resistance level and the long wick on-top of the body is another indication of sellers taking over this market. thus indicating a decrease in upward momentum and a possible short trade set-up coming into play.
3. lastly, My final TP for my previous long entry was 1.13500 marked out by the bubble. But, the previous daily candle stick fell short of this by 56 points (1.13444), thus i manually closed the trade.
Entry explanation:
due to the strong descending trendline that has been obeyed time and time before, there is still a possibility that this pair may continue to the upside, reject the trendline properly before melting, thus my SL, will be slightly bigger in this case (still falling within my R:R plan)
Trade active:
Although news caused this pair to spike to the upside last week, my bias is still bearish on this pair. Thus, I still see this pair shorting to about 1.11250 (monthly key level), after a retracement to the 50%, 38.2% or 23.6% fib level which i updated and drew onto the 4h chart.
The 38.2% level coincides with the weekly key level 1.13250 thus being the favorable short entry position. Will only be able to determine a good short entry point once markets are open.
I will continue to keep this trade set-up updated
The 38.2% level coincides with the weekly key level 1.13250 thus being the favorable short entry position. Will only be able to determine a good short entry point once markets are open.
I will continue to keep this trade set-up updated