Following today's USA Tax Reform euphoria and the fulfilment of the Head and Shoulders Pattern, the currency pair is giving us a safe trade to short to the beginning yesterday's momentum spike.
The 1.27 and 1.618 Fib Extension set out the standard targets for HS Patterns. ATM, they are coinciding with recent strong resistance levels which give good comfort for traders looking to nail 20-30 pips on a reversal. The 34 MA is also at a distance, which gives good safety as market is too far away from it to keep pushing up before re-touching it. Also, don't be surprised if Market pulls back farther than the described target and hits the long term Trendline identified on the 4hr.
If not topped out already, lookout for the 1.618 level of the HS Pattern to Short with a tight SL.
The 1.27 and 1.618 Fib Extension set out the standard targets for HS Patterns. ATM, they are coinciding with recent strong resistance levels which give good comfort for traders looking to nail 20-30 pips on a reversal. The 34 MA is also at a distance, which gives good safety as market is too far away from it to keep pushing up before re-touching it. Also, don't be surprised if Market pulls back farther than the described target and hits the long term Trendline identified on the 4hr.
If not topped out already, lookout for the 1.618 level of the HS Pattern to Short with a tight SL.
Comment:
First hickup will be @ 1.1836 , after clearing that small support level should be smooth down to TP.
Comment:
Market hit a strong support level at 1.1829
For those that did not get stopped out on a Trailing SL or are looking to get in again the same rule set applies. MONITOR DOW JONES: If it clears All Time Highs that should trigger the EURUSD to pullback to our target.
For those that did not get stopped out on a Trailing SL or are looking to get in again the same rule set applies. MONITOR DOW JONES: If it clears All Time Highs that should trigger the EURUSD to pullback to our target.