Hey guys,
With Australia getting knocked out of the World Cup last night, I guess this will mean that my focus shifts fully back to markets. It was a gallant effort from the lads against France, Denmark and Peru, but ultimately we’re still just lacking that truly world class piece of quality that the bigger footballing nations have.
Sigh.
Well as I said, back to markets! Forex traders will have noticed that EUR/USD is in a nice place for adding to any shorts that you already have. Take a look at the higher time frame chart below that I’ve marked up:
EUR/USD Daily
You can see that while in an obvious bearish trend, price has finally had a little bounce. But as long as price is trending downward like this, I’m much more inclined to short than lonng.
Now what I wanted to highlight with my markup on that above chart:
The pullback zone where I expected sellers to come into the market.
Sellers coming in short term, showing that the zone was in fact significant, but didn’t hold.
The zone is reactivated as resistance as price breaks back down and the retests it.
Zoom into the intraday chart and take a look at the price action:
EUR/USD Hourly
You can see that price has clearly rejected from the zone and this short term pullback into previous short term support as resistance on the hourly could be our entry.
All about sucking that maximum risk:reward from these short term setups. An easy 1:3 early in the week is always an option not to be scoffed at.
✌🏻.
@forexbrokr | Steemit Blog
Market Analyst and Forex Broker.
Twitter: @forexbrokr
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I think we can help this chart in future.
The tensions between Italy and Germany are growing which may act as impetus to slide down Euro against Dollar.