EURUSD ANALYSIS
So on the EURUSD we have had some interesting action happening in the past couple weeks. If you look on the weekly chart of this pair you will see we made a nice head and shoulders and about 2 weeks ago the right shoulder (where it is now) had breached to the downside and broke recent significant structure on the daily timeframe. What we saw last week was some decent strength from the buyers come in and pull price back and above that structure level of 1.15500 area. I didn't like how this looked so im posting this analysis because before that had happened I was on the short side bias for this pair, and I think it could still be a possibility of happening. BUT we need to see that seller interest come back in and play a role in this downside momentum. So lets break it down.
1D Chart:
*on this timeframe you can see that price broke recent significant structure at 1.15500 level
*did price hold? not very well. Due to this fact we want to just be watching this pair on the daily timeframe at this moment.
*if you look at the daily chart you will see that ther IS descending trend line that has been holding since beginning of June
*watch this pair once it comes into that descending trend line and if we start to see some signs of buyers dying out and strong sellers coming in, we may have some probability and sentiment to support a short on this pair
*there is also significant structure at 1.17500, watch this level too in case EU tries a fakeout above the trendline
4H Chart:
*on this chart it will give us a better idea of the momentum going on on the smaller scale
*this chart still represents a good amount of data but gives us a little better look into the buyers and sellers strength
*watch this chart for buyers to die out and strong seller strength to come in
ALWAYS have a trading plan when approaching the markets. Stay disciplined to this plan and make sure to always use proper risk. Never risk more than 2% of trading capital per trade and make sure you have a back-tested systematic approach in which you apply to the markets. If you come un-prepared then the markets will own you.
Cheers! Keep your eyes out !
So on the EURUSD we have had some interesting action happening in the past couple weeks. If you look on the weekly chart of this pair you will see we made a nice head and shoulders and about 2 weeks ago the right shoulder (where it is now) had breached to the downside and broke recent significant structure on the daily timeframe. What we saw last week was some decent strength from the buyers come in and pull price back and above that structure level of 1.15500 area. I didn't like how this looked so im posting this analysis because before that had happened I was on the short side bias for this pair, and I think it could still be a possibility of happening. BUT we need to see that seller interest come back in and play a role in this downside momentum. So lets break it down.
1D Chart:
*on this timeframe you can see that price broke recent significant structure at 1.15500 level
*did price hold? not very well. Due to this fact we want to just be watching this pair on the daily timeframe at this moment.
*if you look at the daily chart you will see that ther IS descending trend line that has been holding since beginning of June
*watch this pair once it comes into that descending trend line and if we start to see some signs of buyers dying out and strong sellers coming in, we may have some probability and sentiment to support a short on this pair
*there is also significant structure at 1.17500, watch this level too in case EU tries a fakeout above the trendline
4H Chart:
*on this chart it will give us a better idea of the momentum going on on the smaller scale
*this chart still represents a good amount of data but gives us a little better look into the buyers and sellers strength
*watch this chart for buyers to die out and strong seller strength to come in
ALWAYS have a trading plan when approaching the markets. Stay disciplined to this plan and make sure to always use proper risk. Never risk more than 2% of trading capital per trade and make sure you have a back-tested systematic approach in which you apply to the markets. If you come un-prepared then the markets will own you.
Cheers! Keep your eyes out !