EURUSD – Looking for optimal entry to short - the week of 16 May
The fact that this pair is bearish is obvious and needs no further elaboration. The questions are when/if a reversal will happen or will the EUR get down to parity with USD. At this time, I do not see the bears slowing down, pullbacks are relatively shallow. There have been a couple of consolidation phases but for the most part, the pair continues to make lower highs and lows.
Since my bias is bearish, I need to find a value entry point for taking a trade. If we get a substantial retracement, the region near 1.0500 looks perfect. It would allow for a good logical stop. I will be following price action in this area to see if this materializes. As for target, there is very little previous price action in this area and I had to scroll back to Dec 2002 to find a significant level of 1.0130. That is 370 pips away so perhaps having 2 trades with different profit levels is the way to go. If this works as per my expectations, we could be looking at a potentially 3.5-4R trade.
If, however, price starts reversing, that would negate my analysis. I will not be interested in going long just yet. Waiting and watching until I can be confident of a trend reversal will be the way to go.
If you like my analysis, please give it a “thumbs up” and follow me to get immediate notifications.
Always use sound money and risk management and stay patient in all your trades.
Since my bias is bearish, I need to find a value entry point for taking a trade. If we get a substantial retracement, the region near 1.0500 looks perfect. It would allow for a good logical stop. I will be following price action in this area to see if this materializes. As for target, there is very little previous price action in this area and I had to scroll back to Dec 2002 to find a significant level of 1.0130. That is 370 pips away so perhaps having 2 trades with different profit levels is the way to go. If this works as per my expectations, we could be looking at a potentially 3.5-4R trade.
If, however, price starts reversing, that would negate my analysis. I will not be interested in going long just yet. Waiting and watching until I can be confident of a trend reversal will be the way to go.
If you like my analysis, please give it a “thumbs up” and follow me to get immediate notifications.
Always use sound money and risk management and stay patient in all your trades.
交易开始:
Missed getting stopped out by a whisker, trade still open and I remain optimistic.