Lets break down 4 hr EURUSD chart for this coming early week. Last 8 hours green candlesticks had long shadows or wicks, but small bodies. They both stopped at a major RESISTANCE area of 6/16/2016 of 1.11308< at that time, which was a SUPPORT level. RSI momentum indicator with default of 14 shows a OVERBOUGHT PA. RSI is 76+.
My plan for this week with this pair is as follows:
1) Wait for next 4 hour candlestick- if this candlestick is RED & either an Engulfing or Harami pattern, plan Put trades.
2) Go to shorter time frame charts (like 1 hour or 15 minutes) to do shorter PUT trades, if these charts turn Bearish.
3) Once PA turns BEARISH, next support area is around 1.11200 around 400 + lower then PA now (1.11673)
I believe that 1st few days or until around Wednesday (8/3/16) PA will go to Bearish side for trading here, then need to recheck when PA is around area of 1.11200 area. Remember: Longer time frames have stronger S/R areas.
My plan for this week with this pair is as follows:
1) Wait for next 4 hour candlestick- if this candlestick is RED & either an Engulfing or Harami pattern, plan Put trades.
2) Go to shorter time frame charts (like 1 hour or 15 minutes) to do shorter PUT trades, if these charts turn Bearish.
3) Once PA turns BEARISH, next support area is around 1.11200 around 400 + lower then PA now (1.11673)
I believe that 1st few days or until around Wednesday (8/3/16) PA will go to Bearish side for trading here, then need to recheck when PA is around area of 1.11200 area. Remember: Longer time frames have stronger S/R areas.