EURUSD Potential Swing to the Upside *READ* Rules for Entry
Prior to reading this analysis please see the link to the previous post that I made on
EURUSD
. As per my previous post,
EURUSD
gave off some bullish momentum, saw resistance at the 1.2100 level, but buyers supported it by not letting it fall below the 1.11800 level for a few hours. Over the night price action broke down, and this morning's data brought the bullish momentum back into the market. Since then price action retraced precisely to the 1.12100 level which is now holding as a level of support. Note that this level is also a 61.8% retracement of the swing low to swing high of this move. The buyers that supported the 1.12100 level caused a nice bullish candle wick and price action is now being supported at the 1.12250 level. A run up to retest the previous structure high is likely with the given market conditions.
*NOTE* An entry is not expected until early next week.
Please note the following rules below for entry:
The 61.8% retracement holding as support (1.12100)
Bullish momentum to the upside
Enter on bullish momentum breaking out above the 1.2250 level
Profit whatever you can get, but the 1.2900 level might be a good target
Stops at around 1.12000
This trade will lose its potential if first rule becomes no longer applicable. For example if more bearish momentum enters into the market and we see price action move substantially below the 61.8% retracement (1.12100).
You will find that my style of trading often holds a greater risk than reward, however the potential of price action moving in the favor of my position where profit can be liquidated and banked before price action moves against me is very high when the rules are followed.
If you find yourself liking my style of trading please feel free to follow me as I will post potential trades like this rather frequently.
EURUSD
. As per my previous post,
EURUSD
gave off some bullish momentum, saw resistance at the 1.2100 level, but buyers supported it by not letting it fall below the 1.11800 level for a few hours. Over the night price action broke down, and this morning's data brought the bullish momentum back into the market. Since then price action retraced precisely to the 1.12100 level which is now holding as a level of support. Note that this level is also a 61.8% retracement of the swing low to swing high of this move. The buyers that supported the 1.12100 level caused a nice bullish candle wick and price action is now being supported at the 1.12250 level. A run up to retest the previous structure high is likely with the given market conditions. *NOTE* An entry is not expected until early next week.
Please note the following rules below for entry:
The 61.8% retracement holding as support (1.12100)
Bullish momentum to the upside
Enter on bullish momentum breaking out above the 1.2250 level
Profit whatever you can get, but the 1.2900 level might be a good target
Stops at around 1.12000
This trade will lose its potential if first rule becomes no longer applicable. For example if more bearish momentum enters into the market and we see price action move substantially below the 61.8% retracement (1.12100).
You will find that my style of trading often holds a greater risk than reward, however the potential of price action moving in the favor of my position where profit can be liquidated and banked before price action moves against me is very high when the rules are followed.
If you find yourself liking my style of trading please feel free to follow me as I will post potential trades like this rather frequently.
