On April of this year, this pair found a strong resistance at the 8.90 level by which prices reversed and headed to the downside. This heading to the downside was a very good opportunity for high risk takers to jump into short positions. But because we as safe long term traders, we like to wait for the market prices to play for us and then we decide to jump in or not.
Before we jump in
So before we jump into short positions first we need:
- Prices to breach and close below the 200 daily moving average.
- A retest of the 200 DMA resistance without breaching or breaking above it.
-A break and close below the 0.382 fib level, located at support of the round number 8.011.
- Breach of the black .
Riding the trend
If price does what we dictated, then we can ride the trend towards 0.50% fib and 0.76% fib. Our long term short target would be set at the 7.0 round number.
Prices might do what we are waiting for and then reverse and get us caught in loses. Well that should be normal. Its normal to lose in trading, but its important to have a strategy that you believe in. Do not trade hard, trade smart.