Hello everyone this is my idea for Euro/Usd on daily time frame .. in this Analysis i will explain why I am short
Few things to keep in Mind .. Long picture EURUSD is bullish
Price have had two breakouts and long term trend lines are holding as support as shown in the chart ..
however we are going short selling ( short term ) for few reasons mentioned below .. I will explain entry exist and why we take this trade .. from TA point of view
Why did we take this trade ..
First price has retested red line which always held as price selling barrier ( strong resistance )
Second price showed rejection from red line ..
Third head and shoulder pattern could be folding .. as shown in the chart
fourth RSI indicator broke a bullish divergence ( black line ) this black line could act as resistance
Fifth Price need to test a good support to gain momentum and liquidity to continue the uptrend
Now we discuss entry .. targets .. stop loss
We can start entry now or after forming of the right shoulder ..
Our target should be the support below .. ( black line ) .. ( blue line ) .. ( green line ) ..
Our stop loss is daily candle close above red line .. which our idea is not valid any more ..
Reminder The trend is bullish no important supports were broken .. this is a small short idea
For bulls .. ( buying thesis )
Now I would buy from black line or blue line or green line ..
As long as those supports hold meaning ( no daily candle close below ) .. that's our stop loss
For any question feel free to ask :) and good luck
Few things to keep in Mind .. Long picture EURUSD is bullish
Price have had two breakouts and long term trend lines are holding as support as shown in the chart ..
however we are going short selling ( short term ) for few reasons mentioned below .. I will explain entry exist and why we take this trade .. from TA point of view
Why did we take this trade ..
First price has retested red line which always held as price selling barrier ( strong resistance )
Second price showed rejection from red line ..
Third head and shoulder pattern could be folding .. as shown in the chart
fourth RSI indicator broke a bullish divergence ( black line ) this black line could act as resistance
Fifth Price need to test a good support to gain momentum and liquidity to continue the uptrend
Now we discuss entry .. targets .. stop loss
We can start entry now or after forming of the right shoulder ..
Our target should be the support below .. ( black line ) .. ( blue line ) .. ( green line ) ..
Our stop loss is daily candle close above red line .. which our idea is not valid any more ..
Reminder The trend is bullish no important supports were broken .. this is a small short idea
For bulls .. ( buying thesis )
Now I would buy from black line or blue line or green line ..
As long as those supports hold meaning ( no daily candle close below ) .. that's our stop loss
For any question feel free to ask :) and good luck