Buy above 1.2199. Stop loss 1.1999. Take profit 1.2293.
Reason for trading strategy:
EURUSD is approaching its support at 1.2070 (100% Fibonacci extension x2, 50% Fibonacci retracement, horizontal pullback support, descending channel support) where we expect price to bounce and rise to its resistance at 1.2293 (61.8% Fibonacci retracement, horizontal overlap resistance). We do have to be cautious of the intermediate resistance at 1.2199 (61.8% Fibonacci extension, 38.2% Fibonacci retracement, horizontal pullback resistance).
Stochastic (55, 5, 3) is approaching its support at 4.04% where a corresponding bounce is expected.
Trade active
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It bounced off its support and its descending channel support where we still expect it to rise further!
Its risky to go long, but I see the 1.22 price holding. Fundamentals support the strength in the us dollar,and the EUR will be pulled down as a result of the us strength.
I would wait for the 1.22 price area to go short and then add to my position after it breaks the 1.207 area...EUR GDP and US FOMC Rate Decision new coming out next week, hopefully they support the setup.
danielmulkerrins
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Its a strong down trend. so would be best to wait for more confirmation. I.E a retest of the area first. to see if it brakes support or not.
danielmulkerrins
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i think these are good trade ideas. However, like the comments below it would be nice to have some updates on how you feel your idea is progressing.