Hi guys, lately price action didn't go in our favor. I apologize to you if you did take some losses because of my charts, but one of the hard part in trading is to keep using the same methodology (proven to be valid) over and over again, without sabotaging it. So here we are with one of the usual structure plays on the chart. As you all see, euro has rallied a lot this week, and in this particular pair it reached a key resistance area that could stop the rally and start a reversal. Why am i interested in this particular zone? Simply, look left and you'll notice some of the previous touches on that level that always provided with some good shorting opportunities. So the previous behaviour could repeat again. Plus, we also have an AB=CD pattern that's just completed and the RSI is way overbought. It additionally confirm the good spot we're in. So keep a look at the lower timeframes seeking for a shorting signal in price action, such as double tops, engulfings, pinbar and so on. I'll keep you updated.
If you want to share your view, or simply ask questions, feel free to comment below. Otherwise, see you in the next chart!
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Right now i'm waiting to see how price will react at this level:
Trading is a probabilities game. Outcome of individual trades do not matter. Good trading systems will consistently take money out of the markets over the long run. Your way of analysis and trading is solid . Keep up the good work.
Roker1
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@joadri1, you're right! It's not about always winning it's about making educated guesses.
MRDennis
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So when will the eur/cad fall? because its already dropping. or will it go up once more ? thx
Roker1
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@MRDennis, you need a strong sell signal, i don't see anything yet.