- Technical Analysis.
I have two chart, Daily Chart and 1H Chart.
- Daily Chart:
We have a strong resistance level at 1.31 I show on the chart.
A very strong support at 1.2770 I show on the chart.
So I choose 1.31 as a good point to place stop loss, and 1.2770 as take profit.
From 1.31 to 1.2770 we have 330 pips, the Risk and Ratio I choose 1:2, so the entry point should be at 1.3000
Look at on the 1H chart: 1.3000 is 38.2% Fib retracement. A good retracement level price usually chooses to test after a trend.
Thus, I will place a SELL Limit Order at 1.3000, stop loss at 1.3100, and take profit at 1.2770 as a reccommend trade for EURUSD.
Moreover, all Oscilators of EURUSD from RSI, Stoch, CCI, %W are in the oversold zone for a long long period, I expect there is a short term correction of EURUSD to 1.3000, any rally a chance to SHORT, the rally to 1.3000 will meet the SELL force from SELL LIMIT Orders and pullback. I expect in this week, lacking US data and EZ data would cause a short term correction.
But a problem arises, if EURUSD doesn't rebounce and falling down ??. The SELL Limit Order will not be active, and we miss the move.
To sold this problem, I place a SELL Stop Order.
We see 1.2920 is a low of this week. Look at on the 1H chart, 23.6% Fib retracement is at 1.2973 ~ 1.2980. The stop loss of SELL Stop Order should be at 1.300 if EURUSD breaks through 1.2920 ; 1.300 is a psycho level,I think this is a good point to place stop loss.
Moreover, from 1.2770 to 1.2920 is 150 pips, 150 / 2 = 75 pips. from 1.2920 + 75 pips = 1.2995 ~ 1.3000, maintain 1:2 R/R ratio.
Hence, I have two choices on the table now:
- If EURUSD retraces to 1.3000, the SELL Limit order is active, stop loss at 1.3100, take profit at 1.2770
- If EURUSD falls down without retracement, th SELL Stop order is active, stop loss at 1.3000, take profit at 1.2770
Don't forget if SELL Limit order is active, you should close SELL Stop Order.
This is a reccommend trasde for Medium Term , this trade could need 1-2 month to finish.
