I sniffed out this one and it is my view that this pair has reached a point where the wedge pattern which has formed on the weekly chart must define a longer term direction. The price action on the daily is showing the there has been a break out of the top of the wedge formation and is showing signs of rejection based on the last 7 days trading. Each time there has been an upwards push, price action has resulted in a return back towards the downside. In my analysis I see this as signal to start building a short position for a long term move. With the current chaos which is prevalent in the euro zone things could become very bearish. With the combination of the price action which my view is supported by as my primary indicator, I am seeing signs of a lack of buyers at this price point. The recent reversal on the daily candles in the previous days trading, as well as the fact that the price is holding around recent lows I will be entering on the short side. My first take profit would be around the 126.000 mark at this point I plan to drag the stop and trail. My trading style utilizes my own discretion and reading of price action to determine my exit, but I would go for multiple small positions in this kind of scenario to allow me to stay on board for a crash down to bottom of the wedge. Whilst for some this may seem absurd I aim to hold my position because I generally find it a lot less emotional finding short term moves. This trade has very serious potential.
I hope you all manage the risk and have a great week.
I hope you all manage the risk and have a great week.
