240pips running in our direction since my last publication on this pair (see link below for reference purposes); EUR/USD has been caught within a range capped between $1.20600 and $1.21600 since price hit a peak @ $1.21780 at the beginning of the month. Considering the completion of a Double Top "look-alike" pattern, a counter-trend opportunity surfaces as a short-term pullback appears to be healthy for the buyers at this juncture to gain enough momentum to push the rally.
Tendency: Downtrend ( Bearish )
Structure: Reversal pattern | Double Top | Supply & Demand
Observation: i. The Bullish run that started mid-November 2020 appears to have found a bus stop (Supply zone) as buyers attempt to push the price beyond $1.2780 is met with rigorous Selling pressure.
ii. A sharp rejection of $1.21600 area on Friday with an engulfing Bearish candles calls my attention to the strength Sellers have at this level.
iii. As price finds a new Supply level @ $1.21350 towards the close of last week trading session, this key level shall be a level to look out for in the coming weeks to open a sell position should in case of price retraces back.
iv. A Breakdown/Retest of $1.20600 shall inspire a second position.
Trading plan: SELL confirmation with a minimum potential profit of 200 pips.
Risk/Reward: 1:5
Potential Duration: 4 to 10 days
NB: This speculation can be considered to make decisions on lower timeframes.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Tendency: Downtrend ( Bearish )
Structure: Reversal pattern | Double Top | Supply & Demand
Observation: i. The Bullish run that started mid-November 2020 appears to have found a bus stop (Supply zone) as buyers attempt to push the price beyond $1.2780 is met with rigorous Selling pressure.
ii. A sharp rejection of $1.21600 area on Friday with an engulfing Bearish candles calls my attention to the strength Sellers have at this level.
iii. As price finds a new Supply level @ $1.21350 towards the close of last week trading session, this key level shall be a level to look out for in the coming weeks to open a sell position should in case of price retraces back.
iv. A Breakdown/Retest of $1.20600 shall inspire a second position.
Trading plan: SELL confirmation with a minimum potential profit of 200 pips.
Risk/Reward: 1:5
Potential Duration: 4 to 10 days
NB: This speculation can be considered to make decisions on lower timeframes.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Trade smart. Trade consciously
