Going Long USDSEK While Awaiting for Dollar Bear to Resume
Some pairs, such as USDMXN have falling more than 3% over the past week, but the USDJPY pair is hesitant to fall do to several economic reasons.
While waiting for the USD bear market to resume, I have placed an order to buy USDSEK in the up direction. The most ideal stop would be placed under the previous daily low of support at 8.5700, but I don't want to stay in the trade that far should the trade go against me and the dollar suddenly continues to shoot down; hence, a smaller stop on the chart, and a smaller target to what I believe is an equilibrium price if USDSEK decides to move up or overshoot.
Further technical reasons:
(1) Stochastics oversold
(2) Momentum bullish
(3) RSI at extremes and bullish
(4) Harami Japanese price pattern called a doji reveals hesitation of the previous bear swing to continue, and a bullish swing is pregnant, but it could lose its pregnancy although the sign is there, which is why I don't want to hold to the 8.5700 swing low. I'd rather just get out if the bear swing continues.
While waiting for the USD bear market to resume, I have placed an order to buy USDSEK in the up direction. The most ideal stop would be placed under the previous daily low of support at 8.5700, but I don't want to stay in the trade that far should the trade go against me and the dollar suddenly continues to shoot down; hence, a smaller stop on the chart, and a smaller target to what I believe is an equilibrium price if USDSEK decides to move up or overshoot.
Further technical reasons:
(1) Stochastics oversold
(2) Momentum bullish
(3) RSI at extremes and bullish
(4) Harami Japanese price pattern called a doji reveals hesitation of the previous bear swing to continue, and a bullish swing is pregnant, but it could lose its pregnancy although the sign is there, which is why I don't want to hold to the 8.5700 swing low. I'd rather just get out if the bear swing continues.
Trade active
Trade closed: target reached
Capturing the swings of the stock market & currency market. It's a dirty job and equity/currency traders must do it.