Price is currently sitting on top of broken weekly resistance, so a bounce back up can be expected. So the Idea is simple. If I see price trading back above the broken support level 121.973, then I would look to enter a long position to catch a retracement back up towards the daily resistance area of 124.10.
If price fails to do that and continues the ride lower, then I would rather sit on my hands than trade that pair since the risk reward is not really there anymore. I managed to get out of my short position too early due to a psychological error. Entry was at 123.815 and I targeted 122.00, however a 1h bullish hammer on a support level got me scared as I had suffered many breakeven trades before. Overall medium/long term view is that EJ will reach 117.500 level.
Let's see if price can give us the opportunity to make some money on this pair again next week.
If price fails to do that and continues the ride lower, then I would rather sit on my hands than trade that pair since the risk reward is not really there anymore. I managed to get out of my short position too early due to a psychological error. Entry was at 123.815 and I targeted 122.00, however a 1h bullish hammer on a support level got me scared as I had suffered many breakeven trades before. Overall medium/long term view is that EJ will reach 117.500 level.
Let's see if price can give us the opportunity to make some money on this pair again next week.