Double bearish top at 1.1668?

0


The price is in a symmetrical bullish ascending price channel.

Last Tuesday’s EUR / USD signal could have produced a slightly profitable short entry following the bearish rejection of the resistance level I identified at 1.1668.

EUR / USD signals of the day

Risk 0.75%.

Transactions can only be entered between 8:00 a.m. and 5:00 p.m. London time today.

  • Take a short position after a bearish reversal in the H1 period immediately after the next contact of 1.1668, 1.1688, 1.1711 or 1.1753.

  • Put the stop loss 1 pip above the local swing high.

  • Adjust the stop loss to reach the breakeven point once the trade reaches 20 pips of profit.

  • Take out 50% of the position as profit when the price reaches 20 pips of profit and let the rest of the position surf.

Long business ideas

  • Go long after a bullish price reversal over the H1 period immediately after the next contact of 1.1640, 1.1623, 1.1609 or 1.1567.

  • Put the stop loss 1 pip below the local swing low.

  • Adjust the stop loss to reach the breakeven point once the trade reaches 20 pips of profit.

  • Take out 50% of the position as profit when the price reaches 20 pips of profit and let the rest of the position surf.

The best method to identify a classic “price action reversal” is to close an hourly candle, such as a pin bar, doji, outside candle, or even just a engulfing candle with a higher close. You can mine these levels or areas by observing the price action that occurs at the given levels.

Advertising

EUR / USD analysis

I wrote last Tuesday that we were a bit likely to see higher prices during today so I would not be looking to take a short sale below the 1.1753 level.

This was not a good call as the price fell during the day and provided the opportunity for a short but profitable trade following the bearish reversal that occurred at 1.1668.

The technical situation has become more interesting – we are seeing again what looks like a bearish reversal from the same resistance level at 1.1668, suggesting a bearish double top is forming here. However, at the same time, a symmetrical ascending price channel can be drawn which has contained all price movements in the last ten days. These price channels, when symmetrical, can often be used as powerful technical tools to analyze this currency pair. The channel suggests that the price is likely to rise.

I think the best approach today will be to wait for a downward movement that tests the downside trend line and an ideally confluent support at 1.1609 or 1.1623 after a few hours. A firm bullish rebound at this spot should be a high probability long trade entry signal. On the other hand, if the price drops below 1.1609, it will be a bearish sign and could cause a steep decline.

EUR / USD

There is nothing very important expected today regarding the EUR or the USD.


Leave A Reply

Your email address will not be published.