EURUSD: EURO Likely To Keep Falling Towards 1.07000 Support!
Another EURO pair in Freefall for quite some time! Against the USD, the EURO has been free falling in the previous years to date and now the downtrend might continue as the fundamental factors are against the EURO and supported with the USD.
On the technical perspective, the descending channel evident on the weekly charts should likely guide the price to the next support that lies in the 1.07000 region. However with the 1.10000 psychological level still intact on monthly Timeframe, this trade can not be executed just yet! Psychological levels are very important levels in trading that needs to be cleared on monthly timeframe basis and in this case it yet to happen. Therefore to trade this trade with good conformation, it is advisable to await for the Monthly candle to close below 1.1000 first.
Once the above main criteria is met, a short trade could be executed with the details present as below:
TRADE TYPE: SHORT SWING TRADE
ENTRY: 1.1000 PSYCHOLOGICAL RESISTANCE (AWAIT PRICE RETEST TO ATTAIN 1:1 RR)
STOP LOSS: ABOVE THE DESCENDING TRENDLINE AT 1.12500
TAKE PROFIT: 1.07000
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On the technical perspective, the descending channel evident on the weekly charts should likely guide the price to the next support that lies in the 1.07000 region. However with the 1.10000 psychological level still intact on monthly Timeframe, this trade can not be executed just yet! Psychological levels are very important levels in trading that needs to be cleared on monthly timeframe basis and in this case it yet to happen. Therefore to trade this trade with good conformation, it is advisable to await for the Monthly candle to close below 1.1000 first.
Once the above main criteria is met, a short trade could be executed with the details present as below:
TRADE TYPE: SHORT SWING TRADE
ENTRY: 1.1000 PSYCHOLOGICAL RESISTANCE (AWAIT PRICE RETEST TO ATTAIN 1:1 RR)
STOP LOSS: ABOVE THE DESCENDING TRENDLINE AT 1.12500
TAKE PROFIT: 1.07000
Cheers, I hope you find this insight helpful. Please LIKE & FOLLOW for more insights into Major & Minor currency pairs.
