Hello Traders,
Whenever there is synchrony, chances of making money is often high. At the moment, we are seeing this synchrony. There is a confluence of technical formations in different time frames and that is why I think selling the Euro can be a good strategy. This is why I think this is right. First, as we are taking a top-down approach with the weekly chart defining trend, we notice that prices are actually losing their initial bullish steam.
The stochastics gives a better hint of this and as you can see, they are turning from deep the overbought position with a sell signal already in place. Secondly, candlestick characteristics hint of a possibility of lower lows. By late March 2018, we had an inverted hammer with clear price depreciation relative to the upper BB and the following weeks we saw a follow through of this bear trend. Besides, there was a bearish divergence pattern accompanying this AUD price gain. It’s only this week where buyers are rejecting lower prices and have been pushing prices higher as this week’s candlestick shows.
In our entry chart, notice those long upper wicks in the past 3-4 candlesticks. All these point to strong sell pressure. Cementing this is the stochastic sell signal turning from deep the overbought territory just like in the weekly chart. I recommend sells at current prices with stops above this week’s highs. Because of this, my EURAUD trade plan will be as follows:
Sell: 1.5985
Stop Loss: 1.6030
Take Profit: 1.56, 1.52
Have a good trading day and let me know what you think!!!
Originally published at Forex.Today by Dalmas Ngetich
Whenever there is synchrony, chances of making money is often high. At the moment, we are seeing this synchrony. There is a confluence of technical formations in different time frames and that is why I think selling the Euro can be a good strategy. This is why I think this is right. First, as we are taking a top-down approach with the weekly chart defining trend, we notice that prices are actually losing their initial bullish steam.
The stochastics gives a better hint of this and as you can see, they are turning from deep the overbought position with a sell signal already in place. Secondly, candlestick characteristics hint of a possibility of lower lows. By late March 2018, we had an inverted hammer with clear price depreciation relative to the upper BB and the following weeks we saw a follow through of this bear trend. Besides, there was a bearish divergence pattern accompanying this AUD price gain. It’s only this week where buyers are rejecting lower prices and have been pushing prices higher as this week’s candlestick shows.
In our entry chart, notice those long upper wicks in the past 3-4 candlesticks. All these point to strong sell pressure. Cementing this is the stochastic sell signal turning from deep the overbought territory just like in the weekly chart. I recommend sells at current prices with stops above this week’s highs. Because of this, my EURAUD trade plan will be as follows:
Sell: 1.5985
Stop Loss: 1.6030
Take Profit: 1.56, 1.52
Have a good trading day and let me know what you think!!!
Originally published at Forex.Today by Dalmas Ngetich