The EURUSD could be ready for a short term bullish bounce.
Technical Analysis Position and Developments
The EURUSD has been moving lower for the past few weeks. However, the price has reached a confluence of potential support levels.
During the previous bullish wave, the price has taken the falling trend line that connected the prior major swing highs as shown on the daily chart above. Now, the price has retested this broken trend line which might reverses its role to support.
Meantime, the price landed at the main rising trend line for the rising channel as shown on the daily chart above. In addition to the 50-days simple moving average.
Initial test of this area has resulted in a long legged doji candle, confirming the renewed bullish pressures.
Trade Levels: Bought at: 1.0995 // Target 1: 1.1080 // Target 2: 1.1160 // Stop loss : 1.0930. Average risk-reward for the trade is approximately 1.92.
Make sure to read the trading rules below:
1. Maximum risk per trade is 3% of capital. Typically around 2%.
2. Trades are taken in two units.
3. Two targets for each trade. First unit would be closed at first target .
4. After closing first unit at first target, Stop loss will be moved to entry point for the second unit.
5. Second unit would be closed at second target.
6. If first target is reached without triggering entry I cancel the trade .
7. If first target is reached I move stop loss to break-even.
8. Remember: Losing is a main part of the game.
Disclaimer: All trade ideas are hypothetical and only for illustration and educational purposes.
Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. thefxchannel.com and the Authors will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
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