Hello traders! The break out from the wedge has happened and EUR is continuing to show some good strength across the board. There are two upside targets for the pair. First is the wedge pattern target which is at 1.2855 and then it is the 50% fib retracement target which is at 1.2974. 50% retracement is the most common and often tested retracement for the EUR/USD. so there are good reasons for the market to test both these targets. If you have entered at the first long call around 1.2270, it is time to move yours stops to around 1.2340. It is at the center of the wedge and it would be against the logic of the pattern if the market returns into the wedge. The same would be a logical Stop loss point even for those who have entered long at the breakout. Lets watch where this proceeds! Happy trading and happy pipping!
Comments
sanjeev.rawat.7773
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can you please share some trade ideas more son EURAUD and EURNZD as well as GBPJPY EUJPY and AUDJPY
Prabhu.Ram
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Certainly. We just completed a short trade on GBPJPY and AUDJPY if you have seen my previous posts. Currently I just posted an idea on EURJPY, check it out!
I am looking at the other pairs as well, as soon as I spot an opportunity, I will post!
Thanks!!
artificialmustaches
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hmmmmm... in action it could be a rebounce, but is short term and up to your red line (1.2558). That is the upper consolidate line in the main channel, that started at the beginning of november (and is not represented in your chart). G.L. and mind: "Don't fight central banks!"
Prabhu.Ram
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well, that is true.. But overall, dont you think the market has already reacted enough to the central bank? and moreover, the bounce is and consolidation to the lower side has happened right around yearly pivot support. Normally, when a bounce like that happens and with year close around the corner, the bounce up is generally greater. Thank you for your opinion!
Patladj.
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The market is not reacting only on the ECB. There's multiple more factors that act on the dollar, not on the euro.