Introduction:
As we can see on the daily charts,
EURUSD
sat on a 500pips range from May to November, when a loose bearish wedge formation concluded and, from an unsuccesful attempt to break upwards, a downtrend initiated and we are currently in it. The rally on March the 20th was due to the FED's announcement that it would maintain its interest rates, at a time when a parcel of the markets expected some sort of quantitative tightening, and they let go of their positions, causing the
EURUSD
to hike up to 1.14500 levels. It was corrected on the very next days and, even though it failed to create a lower low on the last journey to the support, the overall bearishness of the charts are undeniable. We trade what we see.
How to Proceed:
Our team has already opened a short position on this level, with 3 additional scaling orders from 1.13200 until 1.13800. A hedge long was opened, as it's our usual strategy and it will be closed should price break below the 1.12800 levels and it has a 25 pips trailing stop-loss attached to it. We could observe some sideways move before definitive action takes place and it should not scare traders away. Just keep in mind the key horizontal levels and all interactions with the trendlines.
Take Profit:
Our take profit targets are in the 1.12200-1.11800 range. They can be dynamically changed, i.e., according to live price action, should circumstances alter.
Stop-loss (Invalidation of Analysis):
Our stop-losses here are between the 1.14000 and 1.14500 range. Remember that price tend to repeat itself over large timeframes and that a too tighten stop-loss, while seemingly more risk-verse and safe, could prevent you from taking profit on the longer term. Adjust position sizes accordingly.
Side-notes:
Please keep in mind that the markets have been reacting strongly to news these days, specially on smaller majors, such as the NZD and the AUD, which could create instability and affect
EURUSD
by correlation and arbitrage moves. We are trading the whole forex system here, not only a pair. These positions should be watched closely. Also keep a forex calendar at close hand, since EUR events and news are scheduled for the following days, particularly PMI in the EUR zone.
Please leave your comments below to inspire us to continue our work and don't forget to follow us! Have a great trading session!
As we can see on the daily charts,
EURUSD
sat on a 500pips range from May to November, when a loose bearish wedge formation concluded and, from an unsuccesful attempt to break upwards, a downtrend initiated and we are currently in it. The rally on March the 20th was due to the FED's announcement that it would maintain its interest rates, at a time when a parcel of the markets expected some sort of quantitative tightening, and they let go of their positions, causing the
EURUSD
to hike up to 1.14500 levels. It was corrected on the very next days and, even though it failed to create a lower low on the last journey to the support, the overall bearishness of the charts are undeniable. We trade what we see. How to Proceed:
Our team has already opened a short position on this level, with 3 additional scaling orders from 1.13200 until 1.13800. A hedge long was opened, as it's our usual strategy and it will be closed should price break below the 1.12800 levels and it has a 25 pips trailing stop-loss attached to it. We could observe some sideways move before definitive action takes place and it should not scare traders away. Just keep in mind the key horizontal levels and all interactions with the trendlines.
Take Profit:
Our take profit targets are in the 1.12200-1.11800 range. They can be dynamically changed, i.e., according to live price action, should circumstances alter.
Stop-loss (Invalidation of Analysis):
Our stop-losses here are between the 1.14000 and 1.14500 range. Remember that price tend to repeat itself over large timeframes and that a too tighten stop-loss, while seemingly more risk-verse and safe, could prevent you from taking profit on the longer term. Adjust position sizes accordingly.
Side-notes:
Please keep in mind that the markets have been reacting strongly to news these days, specially on smaller majors, such as the NZD and the AUD, which could create instability and affect
EURUSD
by correlation and arbitrage moves. We are trading the whole forex system here, not only a pair. These positions should be watched closely. Also keep a forex calendar at close hand, since EUR events and news are scheduled for the following days, particularly PMI in the EUR zone. Please leave your comments below to inspire us to continue our work and don't forget to follow us! Have a great trading session!
Trade active:
Following extremely bearish EUR PMI news, our first take profit targets were already hit and we cashed in 80 pips. The trade is still active and our positions are now followed by a trailing stop-loss
Trade closed: target reached:
Although hard to see from the charts, our targets were hit and and the trade was concluded.
