Reasons: 1. Multiple resistance: two downward trend lines and 1.14220 resistance level 2. MACD formed death cross 3. Stoch and RSI indicate downward momentum 4. Not much positive fundamental news favors EUR
TP: 1.13600 SL: 1.14230
Trade closed: stop reached
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Comment
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At the end of the day, my idea was still correct. My stop loss was set too close to the entry, and it was one of the mistakes I made on yesterday's trading. Lesson learned once again.
1.1425 was H1 resistance and the price needed a touch at 1.143 in order to fall down. Hopefully there will be another good entry for you on this.
Erland
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Yes, all seem correct. When i mentioned on Friday that I see a bullish sign on H1 from asian session (and suggested to close your sell from 1.14) it did prove itself with a first move to 1.142 and this morning to 1.144. However things have changed this morning when asian session crossed with EU session - it is showing an RSI divergence with a downward pressure. It may try to touch 1.143 once more before the fall.
So additional points to the mentioned by you:
1) H1 RSI divergence
2) D1 price rejected at Ichimoku bottom cloud (lower resistance) and forcing price to fall down
3) This does not seem to be a long term sell as H4, D1, W1,M1 graphs do not have Chikou Span (green line on Ichimoku indicator) ready to cross the price down convincingly. It keeps hugging it around. A bottom is seen around 1.113
zuoertai
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@Erland, Thank you for your comment! Hopefully this trade will go smoothly without going south (price is going up at this moment).
Erland
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@zuoertai, Hopefully it will start falling soon, but i do not like the fact that D1 RSI and Stoch is still showing mild bullish signs. 1.136 cross is much needed and then a clear cross of 1.132
Best of luck with this sell!
zuoertai
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@Erland, Unfortunately stop loss has been reached by that spike. For now it looks like a fake breached to the 1.14200. I may stay away for now.
Erland
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@zuoertai, Yes, you missed my note about 1.143 in the morning that it needs to touch it before the fall. And it did by closing your position by some 10 pips. Anyway - we are falling down as per earlier reasons you have pointed out. The fall may be halted at 1.136 just to give a chance for late sellers to reenter at 1.141-1.1418
Anyway - not much harm was done to the sell you had and there is a possibility to get that chance again for a sell with last TP 1.1285 (1.132,1.13 partial profits).
See it on a bright side - your forecast was perfect, reasoning - great, entry - ideal. SL- a little too tight. Morning swing high SL would have been best. No too big in case of a loss.
Erland
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I am typing to slowly. By the time i have finished writing it dropped from 1.139 to 1.137 and now it is trying to bounce off 1.136 to give a visit back to 1.141 (if it can).
zuoertai
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@Erland, Yes, my stop loss was too tight. A small but a big lesson for me at the same time again. Thank you!