In yesterday's analysis, I discussed about EU could potentially pullback deeper towards 1.2050 support zone, which was exactly what the market performed. But be aware, despite the violation of 1.2050 minor support zone, we still have a 1.2026 serving as a minor support level. In today's trading session, I will be looking for short-term buying opportunities. These are the two setups that I am looking at
1. Both 1.2026 & 1.2000 are support zones that I will pay attention into. If there's bullish momentum rejecting these zones, I'll be using candlestick pattern as the entry trigger, Eg. engulfing, doji, pin-bar, etc. (Bullish) 2. If there's further bearish pressure pushing price below 1.2000, that could expose 1.1960 support zone (Bearish)
Do not forget the overall trend on the higher timeframe remains bullish.
Trade safe.
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Do you think the support level coiuld be a targetting the low? RSI shows enough room to move down a fair bit on the daily. Then up for sure! thanks for the post.
TraderNeoh
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@Zackfx10, Possible. But if it moves down to low it shows the sellers' strength in control. Personally, I'd recommend to not utilize RSI as primary trigger, as it only serves as an additional confluence for your setup. Eg. RSI in between means the trendline is healthy (No extreme supply & demand imbalance), RSI overbought condition can remain overbought for several days, etc. Hope it helps!
Zackfx10
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@TraderNeoh, Thank you for your reply, I've only just started learning to trade. I just finished the Etoro trading course & the RSI was a tool they showed in the lessons. I understand not to use indicators as a primary trigger but it's useful to understand the general trend direction. Thanks again for the reply.