Hi Traders
We have an extremely interesting set up starting to develop on the Euro / Dollar.
We will break down what has happened over the past few days and what we are hoping to see in the coming days and weeks:
• Over the past weeks the Euro has seen some significant bearish price action against the Dollar, we are anticipating a bit off a break for the Euro and some buying pressure which may ultimately just be a small corrective move in the grand scheme of things. We won’t know for sure until we see how price develops.
As always, the key is to remain reactive and not predictive.
We posted our initial chart on Euro / Dollar on December 13th. Please see below linked analysis.
What can we see looking left?
• The first major catalyst for this trade was the formation of the descending trend. This trend was intact from November 9th right the way through to November 25th and the start of the trend was a breakout of consolidation that
price had been stuck in for a couple weeks.
• There was one nice opportunity on the way down that you could have entered in on the correction which we have shown on the chart marked WFB (Watch for Break). This would have been a nice set up to the downside using the 1hr / 15-minute chart to get a quick scalp in on.
• Once we ultimately seen price break free from this descending trend, we began to see the market start consolidating which gives us a nice indication that we should be monitoring price for a breakout to the upside.
• You will notice the “Minor Descending Channels” (MIDC) we have marked on the chart. After the first MDC there was a good opportunity to go long after the test of the channel but ultimately there was not enough momentum for price to move past our immediate resistance zone. (This set up would have likely produced a break-even trade).
• Looking at the second “MIDC” the opportunity then presented itself to get back into the market at our support zone and at the same time creating a nice triple bottom which has given us the confidence market could now be ready and have enough momentum to break out.
What do we see looking forward and looking right ?
We are now running this position risk free and will look at attempts to get back into the market and scale in our position if the opportunity presents itself.
We are looking at exiting this position just below the 1.15 handle where we have identified a daily structural zone and a key Fibonacci level (0.618 – also referred to as the golden ration) off the most recent swing.
We will evaluate price action again in a few days and see what has developed.
Let me know in the comments below if full break downs like this are helpful and if you would like me to go into more detail for anything illustrated on the charts. Fibonacci levels or channels.
If you agree with this idea, be sure to hit the thumbs up and if you haven’t done so already follow for more set ups like this and full breakdowns.
Thanks in advance,
The Fx Chartist
We have an extremely interesting set up starting to develop on the Euro / Dollar.
We will break down what has happened over the past few days and what we are hoping to see in the coming days and weeks:
• Over the past weeks the Euro has seen some significant bearish price action against the Dollar, we are anticipating a bit off a break for the Euro and some buying pressure which may ultimately just be a small corrective move in the grand scheme of things. We won’t know for sure until we see how price develops.
As always, the key is to remain reactive and not predictive.
We posted our initial chart on Euro / Dollar on December 13th. Please see below linked analysis.
What can we see looking left?
• The first major catalyst for this trade was the formation of the descending trend. This trend was intact from November 9th right the way through to November 25th and the start of the trend was a breakout of consolidation that
price had been stuck in for a couple weeks.
• There was one nice opportunity on the way down that you could have entered in on the correction which we have shown on the chart marked WFB (Watch for Break). This would have been a nice set up to the downside using the 1hr / 15-minute chart to get a quick scalp in on.
• Once we ultimately seen price break free from this descending trend, we began to see the market start consolidating which gives us a nice indication that we should be monitoring price for a breakout to the upside.
• You will notice the “Minor Descending Channels” (MIDC) we have marked on the chart. After the first MDC there was a good opportunity to go long after the test of the channel but ultimately there was not enough momentum for price to move past our immediate resistance zone. (This set up would have likely produced a break-even trade).
• Looking at the second “MIDC” the opportunity then presented itself to get back into the market at our support zone and at the same time creating a nice triple bottom which has given us the confidence market could now be ready and have enough momentum to break out.
What do we see looking forward and looking right ?
We are now running this position risk free and will look at attempts to get back into the market and scale in our position if the opportunity presents itself.
We are looking at exiting this position just below the 1.15 handle where we have identified a daily structural zone and a key Fibonacci level (0.618 – also referred to as the golden ration) off the most recent swing.
We will evaluate price action again in a few days and see what has developed.
Let me know in the comments below if full break downs like this are helpful and if you would like me to go into more detail for anything illustrated on the charts. Fibonacci levels or channels.
If you agree with this idea, be sure to hit the thumbs up and if you haven’t done so already follow for more set ups like this and full breakdowns.
Thanks in advance,
The Fx Chartist
