Recent price action
The 50ema illustrates the price action here quite clearly – a bullish trend, followed by a bearish one and now consolidation. Looking closely at the consolidation, I can sense that the next move could be a bearish continuation – the bearish candles are getting larger, there has been a rejection of higher prices (wick) on Friday and recently, price has been below the 50ema for the most part.
Trade parameters
These are times of fake news and a high level of market manipulation. Trading with smaller position size and giving extra space for stops is recommended. Gaps are regularly seen and anticipating the market open and initial moves is impossible. However, the following scenario would make sense:
Entry – Upon the breakout, or after a pullback to the consolidation area.
Stop – above the round number 1.8500 or the nearest swing high (currently 1.85290).
Target(s) - depend on the trading style, but I have marked a couple of options. I would stay flexible and remain open to taking profit and re-entering if price action confirms a continued move.
General comment
Nothing in trading is ever 100%, so please allow price action to fully develop in your desired direction before executing a trade.
This is not a trade recommendation
The 50ema illustrates the price action here quite clearly – a bullish trend, followed by a bearish one and now consolidation. Looking closely at the consolidation, I can sense that the next move could be a bearish continuation – the bearish candles are getting larger, there has been a rejection of higher prices (wick) on Friday and recently, price has been below the 50ema for the most part.
Trade parameters
These are times of fake news and a high level of market manipulation. Trading with smaller position size and giving extra space for stops is recommended. Gaps are regularly seen and anticipating the market open and initial moves is impossible. However, the following scenario would make sense:
Entry – Upon the breakout, or after a pullback to the consolidation area.
Stop – above the round number 1.8500 or the nearest swing high (currently 1.85290).
Target(s) - depend on the trading style, but I have marked a couple of options. I would stay flexible and remain open to taking profit and re-entering if price action confirms a continued move.
General comment
Nothing in trading is ever 100%, so please allow price action to fully develop in your desired direction before executing a trade.
This is not a trade recommendation
Trade active
Price broke out from the range to the upside and is currently retracing back to the top of the range. I may consider taking a long trade if price action shows a bullish continuation.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.