EURUSD Is Approaching Its Resistance, Prepare For A Drop
Sell below 1.2421. Stop loss at 1.2453. Take profit at 1.2345.
Reason for the trading strategy (technically):
Price is approaching its resistance at 1.2421 (78.6% Fibonacci retracement, horizontal swing high resistance) where we expect price to reverse, pushing it all the way down to its support at 1.2345 (horizontal overlap support). We do have to be cautious of the intermediate resistance at 1.2387 (horizontal overlap resistance) where price could react off it and fall to the support from there.
Stochastic (55, 5, 3) is approaching its resistance at 95% where we expect a corresponding reaction.
Reason for the trading strategy (technically):
Price is approaching its resistance at 1.2421 (78.6% Fibonacci retracement, horizontal swing high resistance) where we expect price to reverse, pushing it all the way down to its support at 1.2345 (horizontal overlap support). We do have to be cautious of the intermediate resistance at 1.2387 (horizontal overlap resistance) where price could react off it and fall to the support from there.
Stochastic (55, 5, 3) is approaching its resistance at 95% where we expect a corresponding reaction.
Trade closed: target reached:
EURUSD rose perfectly to our sell entry before dropping down to our profit target! perfect!