A few weeks back I analyzed the EURUSD… back then it was trading near a long term level and talked about two possible scenarios:
- Bullish condition, if it broke through the upper resistance level
- Bearish condition, if it broke through the lower support level
I favored the later one, specially because we had more than 500 pips before we reach the next LT level…
And you know what… that’s exactly what happened!
The EURUSD broke through the bottom of the range, triggering a bearish condition. And now, I’m going to look for short opportunities.
EURUSD Long Term Analysis
Let me show you how the daily chart looks like today:
It broke through that support level and it is now likely to continue its way down until it reaches its next LT support level around 1.2813.
So we still got more than 370 pips before we hit the next LT level.
Now I need to prepare our entry, and to do that, we need to look at the short term charts.
EURUSD Short Term Analysis
Most of the time I take my trades off the hourly chart… but sometimes we need to adapt.
If we look at the 1H chart, you’ll see a tiny range, very difficult to read… But if you look at the 15M chart instead, you’ll see a cry well defined range.
Here is how that range looks like:
Ok, so we’ve got a bearish condition, a clear range on the short term charts… that means that we can trade a breakout of the range…
Here are the details of my pending order:
Sell stop entry: 1.3167 – spread
Stop Loss: 1.3200
Take Profit: open
Are you currently trading the EURUSD?
Are you going to taje this signal?
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