Upcoming events – The Jackson Hole meeting to spark future volatility, currently being very cautious on the short-term trades, so looking for more longer-term positions to take up. The current strategy is to wait for bullish or bearish confirmation before entering any trades due to heightened event risk.
EUR/USD major resistance @ 1.10763
Short EUR/USD – support has become resistance and we’re waiting for a re-test to go short
TP = 1.10278
SL = 1.10865
EUR/USD has been experiencing ongoing weakness due to the current state of the economy. Since the 1.11 handle is no longer offering support, we see the bearish trend to continue.
Furthermore, the RSI on the daily chart is continuing to show a bearish trend since the end of June 2019.
However, it may be too late to have the entry target at 1.10763. If this is true a strong move down will indicate bearish confirmation towards the previous lows (a.k.a. Take Profit Level)
Trade closed: stop reached
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Unfortunately, the market has spoken and EUR/USD has taken out our Stop Loss.
This was because of the US New Home Sales announcement. Expected sales were 649K and Actual was 635K. Bit of an over-reaction in my opinion but the markets are very sensitive at the moment with the fears of recession looming. I'd keep a keen eye on this pair for short positions in the future.
Long term the EUR will be suppressed because the ECB stated that they want to keep the value of the Euro lower. So, any short EUR trades long term can reap the benefits (Especially, EUR/JPY). Will re-enter the short at around 1.2100 to 1.2185.
would you suggest buying at the 1.10278 lows or to hold before considering even at such a low?
dcaluzzi
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@Pxace, I'd wait for any signs of a bullish engulfing candlestick, but I don't suggest trading against the trend. I'll be keeping tabs and updating you on the movements. Thanks
Pxace
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@dcaluzzi, thank you, new to this so trying not to be to risky without a large safety net in equity
dcaluzzi
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@Pxace, Welcome to the field! I believe you can follow this post so you know exactly when I post the update.