The_Greek_Trader

EURUSD ON CONSOLIDATION MODE BUT IS UPTREND STILL VALID?

Long
FX:EURUSD   Euro / U.S. Dollar
Hello traders i hope you are having a beatiful trading week with lots of profits,let's see our major pair EURUSD and the possible trades after the big sell off we saw the last days.I want also to make clear that i haven't erased all the previous trades from the chart in order for you to check our high success rate we have on this pair.
I also as usual give you two possible trades for short and long scenario but i believe the long scenario for this trade.

Since the EUR/USD daily Forex chart has been in a trading range for 4 months, there is both a buy and sell setup. The bulls have a wedge bull flag , which is a pullback from the rally that began on March 1. The bears have a head and shoulders top.

The EUR/USD daily Forex chart has been in a trading range for 4 months. Therefore, every attempt to break out is likely to reverse. Furthermore, there is always both a reasonable buy and sell setup. But, since trading ranges resist breaking out, most of these patterns fail. This trading range lasted about as long as prior ranges over the past 3 years. Therefore, the odds of a breakout over the next month are higher.

Yet, until there is a breakout, there is no breakout. Traders need to see consecutive strong trend bars breaking out of the range to believe the breakout will succeed. The bears need at least 2 closes at least 50 pips below the 1.2150 March 1 bottom of the range before traders will believe that there will be a 300 measured move down.
Consequently, traders will keep looking for reversals. Since the daily chart is now near the bottom of the range, bulls want to buy. But, the selloff has had 3 strong bear bars. Therefore, the bulls will want at least a micro double bottom .

TECHNICAL OBSERVATIONS
1.We can see that RSI is below 50 neutral level after the strong sell off.
2.Buying volume is quite big indicating that we are in a level that bulls as before are showing buying interest at this price.
3.We can also notice as we stated in our previous articles on EURUSD pair that price bounced up again from the 61.8% golden Fibonacci ratio if we measure the strong upward rally which brought us our currently highs meaning the 1.25 area.
3.Price respected once more the ascending trend line .
4. Ichimoku clouds showing the bearish behaviour of the price he had recently.
5.We can spot the wedge bull flag for the bulls and the Head and Shoulders pattern for the bears.

POSSIBLE TRADES
LONG TRADE
ENTRY AT 1.2230
STOP LOSS AT 1.2160
TARGET 1 AT 1.2360
TARGET 2 AT 1.2520

SHORT TRADE
ENTRY AT 1.2180
BUY STOP AT 1.2230
TARGET 1 AT 1.2080
TARGET 2 AT 1.1950

THANK YOU FOR SUPPORT!KEEP FOLLOWING FOR MORE PROFITS!
DON'T HESITATE TO LEAVE A COMMENT OR A QUESTION YOU HAVE!!

Trade active
Comment: Trade still valid with better risk reward ratio!
Trade closed: stop reached
Comment: Let's wait for this counter trend chance from the support zone..

Comments

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