A trading buddy and myself decided to come together to tackle a few currencies, this is one of them.
The Euro/US Dollar used to be on my radar until I swapped it out with a currency pair that's known for being more aggressive with it's movements. I do plan on adding it back into my watch list once I'm ready to take on more swing trading opportunities. Let's begin!
Bias - Bearish
In a situation like this, I would look to the US Dollar Index to add onto my confluence. I need to see a few things take place in order for me to feel confident to put my capital at risk and that's when I look for clues. If I don't see what I'm looking for OR I feel like I'm forcing myself to see something that isn't there is a clear indication to go eat a bowl of cereal while watching Impractical Jokers.
Confluence (3 or more):
1. Strength in US Dollar (check my DXY analysis).
2. Weekly candle engulfed & closed pass an O.B.
3. Weekly candle closed passed a PPZ.
4. Continuation O.B. formed before engulfing opposing O.B.
In a perfect scenario, the opening candle will gap within that continuation o.b. If that were to happen I would take a conservative approach by placing a stop at the PPZ (1.0846) for a Take Profit set at price's most recent swing low $1.0340. A retest of the old Distal (1.0820) would serve as a good entry too.
If there's a B.A.R. of the $1.0340 level then I would take that as another entry to head towards the PPZ (0.97253). If Price Action happens to plow through the PPZ then I would look to go even lower towards that huge Order Block (0.8231 - 0.8840) for Take Profit. The O.B. was last hit March 1, '01 - April 1, '02 so orders were absorbed which means it's not as strong as an untouched O.B.
Let's see how it plays out!
*NOT FINANCIAL ADVISE*
The Euro/US Dollar used to be on my radar until I swapped it out with a currency pair that's known for being more aggressive with it's movements. I do plan on adding it back into my watch list once I'm ready to take on more swing trading opportunities. Let's begin!
Bias - Bearish
In a situation like this, I would look to the US Dollar Index to add onto my confluence. I need to see a few things take place in order for me to feel confident to put my capital at risk and that's when I look for clues. If I don't see what I'm looking for OR I feel like I'm forcing myself to see something that isn't there is a clear indication to go eat a bowl of cereal while watching Impractical Jokers.
Confluence (3 or more):
1. Strength in US Dollar (check my DXY analysis).
2. Weekly candle engulfed & closed pass an O.B.
3. Weekly candle closed passed a PPZ.
4. Continuation O.B. formed before engulfing opposing O.B.
In a perfect scenario, the opening candle will gap within that continuation o.b. If that were to happen I would take a conservative approach by placing a stop at the PPZ (1.0846) for a Take Profit set at price's most recent swing low $1.0340. A retest of the old Distal (1.0820) would serve as a good entry too.
If there's a B.A.R. of the $1.0340 level then I would take that as another entry to head towards the PPZ (0.97253). If Price Action happens to plow through the PPZ then I would look to go even lower towards that huge Order Block (0.8231 - 0.8840) for Take Profit. The O.B. was last hit March 1, '01 - April 1, '02 so orders were absorbed which means it's not as strong as an untouched O.B.
Let's see how it plays out!
*NOT FINANCIAL ADVISE*
Comment:
*Advice
Comment:
I'm bullish If there's a B.A.R. of the $1.1495 level.