Looking to play a short term pullback play on EURUSD. We are at a very nice level of 1.185-1.19 with the weekly looking to form a low test candle at the 50ema. The daily has rejected this area with some strong bullish momentum after deceleration. After seeing this, I go down to the lower timeframes to look for anything that is telling me the trend is changing. On the intra-days we had a head and shoulder pattern with MACD divergence form right at the level of 1.185 before exploding to the upside breaking the 4hr trendline and the 1hr 50ema. Price is now coming back down to test 0.382-0.5 fib, the pivot and the 50ema. I am looking for further deceleration around this area before taking the 5min 50ema break with a 40 Pip stop. Because this is only a pullback play, I will take profit around the daily 50 and 0.382 fib which lines up nicely with the key level of around 1.207.
Comment:
Was taken out of this trade for break even. The bulls didn't have enough strength to push it to daily 0.382 Fib.