Daily channel is broken but we need a retracement before the fall. See your line at 1.147 where it meets a yellow line - this is a good place to put a lower high and start printing a lower low. In fact 1.145 should be the maximum for lower high but spikes can go higher. It is not a good idea to short around 1.135 as this could be a trap for seller entering too early. It is better to short on every 100-130 pip retracement or alternatively - If we don't go that high now - wait until 1.13 breaks and price retraces back - sell on retracement then. Stay on a safe side as 50-60 pip is not a retracement you should be seeing.
Erland
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Now is about time to start selling around 1.141 to 1.1426 . A good place for SL would be 1.145 or 1.147 depending on risk.
Erland
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Eur/USD has indeed retraced 130 pips from 1.129 levels and are starting to feel the downward pressure. However the drop down was stopped at 1.139 as now could be seen going to 1.144-1.145 where it should fail and new shorts will enter.
Erland
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The price has reached 1.144-1.145 range and consolidating with the possible spike to 1.148 or even 1.15 where we have to observe the new possibility to enter short as previous entry points proved to be short lived and had to be exited in time
Erland
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Your chart still works perfectly and all lines are being respected. I do admire such precision which is a dream of every trader. Tomorrow is FOMC statement day and we'll see what comes out after it as ADP and GDP numbers could provide the moves needed in order to give price direction after FOMC. I do hope that the resistance you have indicated will provide enough power to push the price down once again.
zuoertai
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@Erland, 1.14500 is breached so from now on I will be going long for this pair (already did right after FED's result) :)
Erland
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Yes, that is why I wrote to wait until FED result to make sure we are on the right side. Like I wrote on Jan 29 - the possible spike to 1.15 did come and the pair is now on somewhat overbought conditions on H4 thus it may seek some relief. D1 is still pointing upwards towards 1.162. A break of 1.157 removes selling pressure and the pair completely reverts to bullish move.
zuoertai
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@Erland, Yes, I'm seeking to enter long after the price pulls back. I'm aiming exactly at 1.16