moneymaking
Long

EURUSD: BULLISH FLAG PATTERN & DESCENDING TRIANGLE ON DAILY !!!

FX:EURUSD   Euro Fx/U.S. Dollar
10 months ago
Hello Traders,

FX:EURUSD             has been consolidating for the past 6 weeks, which resulted in Bullish Flag Pattern formation on the daily time frame. The upper portion of the flag pattern is a really strong resistance level since the market has been rejected from that level 9 times. Thus we need a really strong bullish breakout from this level in order for eurusd             to go higher. I have listed the key high impact news events that are most likely to affect the FX:EURUSD             early tomorrow morning on the chart above. We might get the strong upside breakout from one of these events by early tomorrow morning OR the events might also take us in the opposite direction, to the downside. Do pay very close attention to these events as we look to trade based on this bullish flag pattern. Keep in mind that since this is a daily time frame based setup; we need to see a daily break and close above the strong resistance level before entering into the long setup. You don’t want to be caught on the wrong side of the market, especially with the amount of new events coming up pretty soon.

I have labelled 3 potential targets; initial target is a minor one since the trend line has not been tested yet. 1st & 2nd targets are major ones since flag pattern completes at the 1st target level and the 2nd target is a strong rising trend line, which has been tested at least 5 times. The stop would go just under the 50 day moving average (magenta color line) for the long setup. For the short setup, the stop would go above the upper portion of the descending triangle (yellow falling trend line).

Do note that we also have formed a Bearish Descending Triangle within the bullish flag pattern. The breakout that we got earlier was a false breakout since we never got a valid retest of the broken level and thus the pattern would still be considered valid. So if we get a break and close below this triangle pattern then we might be able to enter into a short trade.

KEY NOTE #1: ECB maintained its interest rate @ 0.05%. Need to pay attention to the press conference, which is coming up in 30 mins from now.

Please feel free to AGREE or DISAGREE with this idea by leaving a comment below. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. Good luck everyone :)

Follow me on Twitter as well: moneymaking2016
10 months ago
Comment: UPDATE #1: Hello Traders, both the bullish flag pattern and the bearish descending triangle are still valid after today's daily close. We never got any type of breakout in either of the patterns.
10 months ago
Comment: UPDATE #2: Another false breakout in descending triangle pattern. Waiting for bull flag pattern to be broken :)
10 months ago
Comment: UPDATE #3: Hello Traders, we did get a strong breakout to the upside in the bullish flag pattern. However, we are currently up against strong resistance level and also we have CPI Flash Estimate y/y news coming out early morning @ 5 AM. So be conservative and if you do want to be involved than I would recommend lowering your regular position size by half. All the Best everyone :)
10 months ago
Comment: UPDATE #4: Hello Traders, the breakout that we got earlier in the bullish flag pattern was indeed a false one. Thus, both patterns are still valid, need to wait for a valid retest AFTER the breakout, which we haven't gotten yet.
10 months ago
Comment: UPDATE #5: Minor target reached.
10 months ago
Comment: UPDATE #6: 1st Major target achieved. That completes the bull flag pattern long trade setup :)
10 months ago
Comment: UPDATE #7: Market currently testing the previously broken valid trend line.
10 months ago
Comment: UPDATE #*: All targets reached. Flat on this pair. Looking for entries to short it :)
arif_awan
10 months ago
Lets see where it goes.
+1 Reply
moneymaking arif_awan
10 months ago
That's a short outlook you got there mate?
Reply
arif_awan moneymaking
10 months ago
yes, its right at the 50% .
+1 Reply
moneymaking arif_awan
10 months ago
Nice, all the BEST :)
Reply
arif_awan
10 months ago
Different prospective.
+1 Reply
moneymaking arif_awan
10 months ago
Not bad, trading channels also pretty good strategy :)
Reply
arif_awan moneymaking
10 months ago
thanks, looks pretty bearish in both, actually in 3
+1 Reply
arif_awan arif_awan
10 months ago
Euro is playing around so much,
+1 Reply
moneymaking arif_awan
10 months ago
Great, more confirmation :)
+1 Reply
arif_awan moneymaking
10 months ago
its short till last broken resistance now support now.
+1 Reply
moneymaking arif_awan
10 months ago
Cool, but good risk to reward.
Reply
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