EURUSD is in a great position currently and here's why:
-First, it is in a noticable downtrend.
-Second, it is respecting the trend line and has a major support level.
This is great, in my opinion, because you have specific areas where you know where to enter and get out of trades. For sells you sell at the test of the trend line and put your stop loss about 10-20 pips from that high and have your take profit at the support level, 1.2000. For buys you buy on a bullish candle pattern such as bullish engulfing, morning star, etc. with your stop loss below the resistance zone and take profits just before the test of the trend line.
Long term, I am waiting for EU to either: break out of the downtrend and break the trend line, retest it, and enter on that higher low; or for the support to be broken, retested and start dropping away from the level. Not sure when this will happen but could be sometime next week with the downtrend line approaching the support, creating a wedge.
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-First, it is in a noticable downtrend.
-Second, it is respecting the trend line and has a major support level.
This is great, in my opinion, because you have specific areas where you know where to enter and get out of trades. For sells you sell at the test of the trend line and put your stop loss about 10-20 pips from that high and have your take profit at the support level, 1.2000. For buys you buy on a bullish candle pattern such as bullish engulfing, morning star, etc. with your stop loss below the resistance zone and take profits just before the test of the trend line.
Long term, I am waiting for EU to either: break out of the downtrend and break the trend line, retest it, and enter on that higher low; or for the support to be broken, retested and start dropping away from the level. Not sure when this will happen but could be sometime next week with the downtrend line approaching the support, creating a wedge.
If you enjoyed my post be sure to drop a follow and leave a like/comment :)