I am considering reentering a short term short position here. I took target 1 profits earlier in the session but I am noticing that the euro is struggling to break away from the .236 Fibonacci level and if it breaks and closes below this level it will continue to fall to the .382 level. Research shows that the markets respect the fibonacci levels so I tread with caution at these levels. My concerns with the trade are that the eur is coming off the bottom of my bands and that my oscillators are also in oversold territory. The positives for my short are eur news, we are still well below structure highs and we are above the .236 meaning we are almost overextended to 100% extension. Long story short Im neutral until I see a dip below the .236 and my oscillators atleast break above oversold territory.
Comment:
Well just to update you all on this trade. I did in fact reenter on a short right at the .236 level and as you can see we have gone down past the .382 level. I have taken profits on target 1 and target 2 and will now monitor for target 3. I have some confidence on my side seeing as the fed will raise rates tomorrow and that should get us to target 3. Ok folks that it for now. Until next time plan your trades and trade your plans.