J_Graystone

EURUSD Double Top Trading Idea following fundamnetal EUR Rally

FX:EURUSD   Euro Fx/U.S. Dollar
65 0 2
After seeing the Euro             Rally off fundamentals over the last couple of days, we have hit another resistance structure zone. If the pair puts in a double top at this level, it would present us with a good shorting opportunity.
With RSI being over bought showing bearish divergence on the second test of structure, lots of Fibonacci confluence, and structure looking left, we could see a fall to test previous structure support level at 1178s giving around a 2.5 to 1 R;R;R depending on where you take targets off at.
Remember, in order for this to be a valid double top, the high of the second test candle must at least touch the close of the first top candle but must NOT close above the high of the first top candle. If it does, this would give us a higher high, higher close and therefore we would expect a bullish trend continuation.
Stops minimum 10 pips above the first test top at 1295s or if you use ATR based stops then above 1315s.

Lets see if this double top completes.......

Good Luck
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Billing Sign Out