Cautious (half risk) long EURUSD for the week of 11/04/22
We have a double bottom at support (after a long downtrend) in this pair. Price is stalling and we may get a reversal. However, it is not wise to ignore the established down trend either. After looking at other USD pairs I do get the feeling that the USD is showing some signs of weakness and there may be opportunities to take positions on GBPUSD, USDCAD, USDMEX and some other pairs.
I am inclined to consider a cautious long on EURUSD. Since this will be counter-trend, it would be prudent to take a small position to reduce risk to 50% of “normal”. Setting a smaller target initially to be reviewed on the basis of price action would be my way. In general I feel that close monitoring of price action is required so that we can take advantage of a possible reversal and resumption of downtrend.
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I am inclined to consider a cautious long on EURUSD. Since this will be counter-trend, it would be prudent to take a small position to reduce risk to 50% of “normal”. Setting a smaller target initially to be reviewed on the basis of price action would be my way. In general I feel that close monitoring of price action is required so that we can take advantage of a possible reversal and resumption of downtrend.
If you like my analysis, please give it a “thumbs up” and follow me to get immediate notifications.
Always use sound money and risk management in all your trades.
Trade closed manually:
I was right about being cautious. The up move was short lived as expected, I closed it manually with a small profit as there was no momentum with the bulls. Now looking to go short hopefully will get a bit of retracement before entry.