Quick Recap on my yesterday's trade and price action up until now
Yesterday my intraday bias was EURUSD = Up. Reason? :
1. Price last week have hit Weekly and Monthly Range
2. Price is trading below this levels hence its on price levels that I like to call "a hot zone". Its not a certainty but it has high probability the price would reverse/retrace/move sideways because you cannot keep buying the dollar (when you short EURUSD, you are buying the dollar with Euros) a currency forever without selling it back and putting it back into the "inventory"
3. Price tested levels that I thought at the time a very significant level 1.3200 (My entry and Stoploss are market with Pink arrows/Pink Lines. My TP was the projected daily range high)
4. Price hit my stoploss and went further down to 1.13100 - 1.13000.
5. Price then shoots up in mid speed and hit my intended target (market pays back what it owes //*Range miss one of the projected range high or low, very often the price hits the projected range high or low in the following days. In this case, it pays back before the London opens)
My Trading Plan
Scenario A (Look at blue arrows) : Price stops where it is right now (exceeding the average Asian Session range) and retraces back inside the range. During London opens, I will look for patterns that signals price could go up (W pattern, Bullish engulfing candle, Doji followed by bullish candle. But a W pattern (doesn't need to be all perfect) (LONG)
Scenario B (Look at red arrows) : Price continues and hit either of those two levels. From then on, I will look for a retracement trade. A double top or a quick inverted V (bearish engulfing candle) at those price levels (SHORT)
Note : Long term I am still (BEARISH EURUSD) the EURUSD due to Federal Reserves & ECB's monetary policies (divergent)
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@sufiansaid, Good ideas. I agree with the overall trend is bearish. I wasnt expecting this giant leap an hour ago
sufiansaid
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@Kingmusshy21, I know right. Big positions dumped their short positions perhaps.
Kingmusshy21
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@sufiansaid, I'm currently negative on my trade because of the push up.
I am giving it a day to go back down to the 1.33 level.
Crossing my fingers.
sufiansaid
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@Kingmusshy21, longer term, my bias is EURUSD Bearish. My short term is bullish because in the bigger timeframe I see a correction (The banks need to sell what they've bought at high price = low price at EURUSD/ and buy it again at a lower price = high price at EURUSD). Hang in there buddy, as long as you have your stops and risk managed earlier on, you will be great :D. All the best King!