off support is my favorite technical pattern, and one that always piques my interest. And so, I was pleased to see it form on the EURUSD daily chart
is clearly in an uptrend, is now between the 50% and 61.8% Fibonacci retracement
levels from a major swing low to swing high point, and is forming a hammer
off support. The only cause for hesitation is that price is below the 50 SMA
, but given that it is above the 200 EMA
and all the other factors present -- most notably the upward slope of the chart -- I'm comfortable going long here. There are also signs of bullishness for EUR against CAD and AUD, which further affirmed my interest in going long EURUSD
I'm long at 3701, with my stop at 3615 and my target profit at 3961. So I'm risking 86 pips to gain 256 -- giving me a reward/risk of almost exactly 3:1.
If price can go in my favor and close at or above resistance at 3815, I'll move my entry order to breakeven.