The short which we opened as a swing trade idea was working even better than expected. Price not just dipped, but made a decent Kumo break as well. - Pls see initial trade idea on link below.
This pair will likely develope a nice bearish trend during coming weeks/months, but short term Price has reached an important Key support/resistance level close to 8,20. Daily Slow Stoch has become oversold, Chikou Span hit the Cloud (past Kumo). For a trend to be able to develope further, Chikou Span will have to cross the Kumo too, giving further confirmation. Price also got close to the inner trend line, and from here it would be a bit more difficult to get the next important Key level at 8,10-8,11.
4 Hrs Price action started to flatten out, with a bit of decline in ADX from its top. DMI lines started to converge, Tenkan and Kijun close to each other and to Price.
Frome here I think a pull back is more likely to 8,2940 - 8,3040. That is an important Support zone now, with Daily Kumo, Daily Kijun, 4 Hrs 100 WMA and 4 Hrs Kumo on the top. There I would start looking at sell signals again.
I do not recommend to play this as a long trade, but perhaps it is wise to close at least half of short positions for now. I did it already, and for the other half I sold covered Put options earlier last week. (maturity in about 8 days from now)
This pair will likely develope a nice bearish trend during coming weeks/months, but short term Price has reached an important Key support/resistance level close to 8,20. Daily Slow Stoch has become oversold, Chikou Span hit the Cloud (past Kumo). For a trend to be able to develope further, Chikou Span will have to cross the Kumo too, giving further confirmation. Price also got close to the inner trend line, and from here it would be a bit more difficult to get the next important Key level at 8,10-8,11.
4 Hrs Price action started to flatten out, with a bit of decline in ADX from its top. DMI lines started to converge, Tenkan and Kijun close to each other and to Price.
Frome here I think a pull back is more likely to 8,2940 - 8,3040. That is an important Support zone now, with Daily Kumo, Daily Kijun, 4 Hrs 100 WMA and 4 Hrs Kumo on the top. There I would start looking at sell signals again.
I do not recommend to play this as a long trade, but perhaps it is wise to close at least half of short positions for now. I did it already, and for the other half I sold covered Put options earlier last week. (maturity in about 8 days from now)
