EURUSD: The Price Channel and New Trade Opportunities

The price has been moving in the borders of a horizontal price channel. You can see possible buy and sell signals, which the market gave us. I draw your attention to how RSI supported reversals at the oversold and overbought zones.

The price is moving upside. It is not far from the upper border of the price channel. We can expect a reversal or a breakout from the price channel. These both signal will be able to give a trade opportunity.

If the price bounces from the resistance, which is also supported by SMA100 in the daily chart, we will get a sell signal. Stop orders must be placed above the local swing high and 1.10000 level. Profit targets can be placed based on SMAs and round numbers.


If the price breaks the resistance, it will be a buy signal. Stop orders must be placed below the local swing low. The main profit target can be placed at the previous market high. It is 1.11500 level.

Risk for all trades must be no more than 1-2% of the capital.



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Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.

Comment:

The price bounced from the upper border of the price channel. It gave the sell signal. Who opened short trades following their own trading plan, well done! The price reached the local support zone and SMAs. Probably it is the right time to fix at least the part of profit.