So if you've been following my posts on the EURUSD then you know that I've had a short-term bullish view within a longer-term bearish view. The bullish move from earlier this week worked out perfectly and now the market has reached a level in which it will have to make a key decision point.
BULLISH SIDE - The market is forming another head and shoulder bottom pattern which is a classic reversal pattern providing a bullish outlook. The confirmation of this pattern would be a violation of the nextline and IF we were to get that, THEN I would project a continuation higher to 1.17-1.1750's level.
BEARISH SIDE - If previous structure resistance holds at this level then we could see the end of our relief rally and a continuation lower to retest previous structure lows and a possible extension down to my longer-term bearish projection of 1.110-1.08's.
This chart represents what trading is, multiple parties, having multiple opinions while looking at the same chart. Something I always tell the traders I work with is "to be predictive in your analysis, but reactive in your execution" and essentially what that means is wait for the market to give you confirmation that one thing is more likely to happen than the other.
Good luck traders and if this post was helpful, please let me know by leaving a comment below.
hello sir, just strat following you now, so what now, finnaly euro/usd day close in red at the point of around 1536, what could be next move? should we stick to sell towards to 1400 or wait?
Akil_Stokes
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@waheedjanee, Well, my advice would be to not involve yourself in any type of trade until what on the charts, meets your rules for entry in your trading plan. If you don't have a trading plan then I wouldn't look to get involved in a move. Now that I got that out of the way, my longer-term prediction on this pair is still short. But instead of writing a full paragraph on why, here is a link to 2 videos that I posted to youtube discussing this pair. - youtube.com/watch?v=djsufd-VamI & youtube.com/watch?v=0wEInAeYNmE&t=401s I hope this helps
Akil_Stokes
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@tweinberg4, Thanks, I truly believe that a general knowledge of price action is the backbone of everything else or anything that we want to create in trading.