A little background on myself, i used to trade forex for roughly 3 years from ages 16-19 through highschool.
I use price action trading strategies to set my buy ins and sell outs. I favor bull trading more than shorting.
I got into crypto-currency trading but that doesn't satisfy me as much as forex does!
It's great to be back and trading through meta trader.
Moving on, i am taking a look at pairs USDEUR and i feel like i caught the graph in a great position.
In my opinion it is right on the last support line! If this support is broken i feel that the next bottom would be the highlighted level under current placement.
When i take a look at the i can see that it is oversold.
I take a look at the price action years back where we were in the same position we are now before dipping to .60.
The difference i could see then from now would be that back then in 2005 the graph was almost on the overbought area however now we are on the undersold.
Another difference i could see is back in 2005 the and chart value were not adding up showing a convergence, giving a hint it would drop below the .
The leverage on this trade would be 1:1, which is usually a trade you wouldn't go into, however i don't think the currency will devalue but appreciate in vaule.
If it does go down you would be losing as much as you could make, but i will be going in on this trade.
I see no sign of a convergence here but a push back to .90, and break out or retracement.
I know that people think it's stupid to bet against the EUR.
Most people trade Eur/Usd, but in my case I saw a probable chance at a reversal of trend. Seeing as volume traded was slowing and close to hitting an oversold space.
I don't feel like the trend will continue in USD/EURs favor. as i feel like it was going up to be able to push the graph even lower than it is now.
Only time will tell.
I've made about 700 pips so far since when i posted this last year.
I would lock in profits now before the trend changes.