EURUSD: A Nice Retracement Provides Better Short Opportunities
-INTRODUCTION-
EURUSD has reach a new low at the 1.0350 level. From the new support area, we can see that price has formed a bearish flag channel, retracing slowly and nicely to the previous resistance levels. This retracement gives a great opportunity to short from a higher price level to target the recent new low at 1.0350. In addition, we can see from the weekly chart that 1.0350 level is a very strong support level. From the past price action, the price consolidated at this level for more than 2 ~ 3 months, repeatedly retracing and retesting the support area. Therefore, we expect a few more retests of the 1.0350 level and will be looking to enter sell positions after a retracement.
-TRADING PLAN-
Currently, the price is moving within a bearish flag channel, aiming for the resistance level of 1.0650. Reaching this level would mean a 300-pip retracement. If breaks above, the price could reach the next resistance level of 1.0700, which is a 350-pip retracement. From one of those resistance levels, we will look for a consolidation pattern followed by a sharp bearish price impulse taking down the price.
Check out our previous Euro currencies trading ideas below :)
EURUSD has reach a new low at the 1.0350 level. From the new support area, we can see that price has formed a bearish flag channel, retracing slowly and nicely to the previous resistance levels. This retracement gives a great opportunity to short from a higher price level to target the recent new low at 1.0350. In addition, we can see from the weekly chart that 1.0350 level is a very strong support level. From the past price action, the price consolidated at this level for more than 2 ~ 3 months, repeatedly retracing and retesting the support area. Therefore, we expect a few more retests of the 1.0350 level and will be looking to enter sell positions after a retracement.
-TRADING PLAN-
Currently, the price is moving within a bearish flag channel, aiming for the resistance level of 1.0650. Reaching this level would mean a 300-pip retracement. If breaks above, the price could reach the next resistance level of 1.0700, which is a 350-pip retracement. From one of those resistance levels, we will look for a consolidation pattern followed by a sharp bearish price impulse taking down the price.
Check out our previous Euro currencies trading ideas below :)
