EURUSD has perfectly closed on the support line of a rising parallel channel.
as it been said earlier, we still remain bullish biased until the market is trading within. however, the market is clearly slowing down and we must consider that. for that reason, we should be prepared for a bearish breakout.
here is your plan, that will help you properly trade a bearish breakout:
first of all, 1.178 is our last horizontal higher low level. to avoid a false breakout, violation of the support of the channel is not enough! we need a daily candle close below this horizontal support as well, that is what confirms the breakout.
then we can sell the retest of the broken channel. the resistance cluster will be the expanding area between a horizontal higher low and rising support of the channel. I would suggest looking for a confirmation signal within that area to short.
our goal will be 1.16 level based on a weekly structure.
p.s remember that it is a conditional trading plan. I am not predicting a bearish breakout, but give you a plan on how to act if it happens.
@VasilyPonomarev, yes possible but I am this one before the drop-
fadifox
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great idea
in my opinion ..1.2000 is a number must be retested to trigger the downside momentum !!its a common market action !dont you think so!
thank you for sharing