AaronLeggett
Short

EURUSD - Short term Short opportunity

FX:EURUSD   Euro Fx/U.S. Dollar
In the longer term time frames we can see an ascending triangle formation and a descending channel , both of which signify a bullish market.

However, on the 30 minute time-frame, my analysis is suggesting that there is a potential short opportunity to capture some pips. Even before the Fibonacci levels became valid (through plotting the low point at 1.08921), they were being respected as S/R levels. The most notable being the 0.382 level at around 1.09800. It's clear to see how there was major resistance at this level and the only thing that could break that resistance was fundamental news releases.

Since then the market has corrected and brought it back down to the 0.382 level, which means the market will either bounce and go up, or go down (which I fully expect it to do, given the strength of this level).

An optimal entry point would be once it breaches another strong, natural level of S/R at the dotted red line (1.9640), as shown with the short position risk:reward tool.

Stops can be kept tight or loose, depending on how you feel, but if it broke that resistance at 0.382 and didn't quickly retrace, it'll take off. I'm keeping my profit line just above the 1.08921 line as this could prove to be some strong support, however, don't be surprised if it continues down to the blue dotted line, which is the long-term trendline which makes up the ascending triangle on the higher timeframes.

My personal order is for:
- £0.50 per point.
- 1.09550 Entry
- 1.09710 Stop (-£8)
- 1.09050 Profit (+£25)

Trade shouldn't take too long to complete if it materializes! Good Luck!
Pip-thief
2 years ago
Thanks for this idea buddy, nice to see someone showing how much they trade per point to, thumbs up. Not sure I would describe the red dotted line as "strong natural level of S/R" though as price doesn't seem to care for it, its been breached several times without settling at any point with conviction. I get your point however. Trade with IG by any chance ?
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AaronLeggett Pip-thief
2 years ago
It's okay, if you got on it I hope you had a looser stop than me! That 0.382 level held well like I thought it would, and the dotted line also held well further along for both support and resistance, yeah I agree it's been breached a few times but it has been the basis for further moves. I called it natural because it wasn't a fib level or a calculated pivot point! I trade with CMC but I really need to open an IG account just incase they go down, I was out of trading for 3 months because Plus500 had to freeze all UK accounts for checks, so I've learned my lesson on putting all your eggs in one basket!
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