EURUSD Trade watchlist and recommendations 11–15th October, 2021
Hello, traders, it is another trading week, and here is a good trade setup on EURUSD.
On the weekly chart, the price is heading to a major support zone around the 1.15 level. This level has not been broken since July 20th, 2020.
Consequently, a descending channel was formed with price respecting the upper and lower trendline since January, 11, 2021. These channels seems to be a strong channel with price pulling back when the channels were tested. Also, the lower channel seems to be in a confluence level with the major support found at 1.15 giving a high probability of price reversal.
On further technical analysis, the stochastics and RSI on D1 timeframe indicate that the price is strongly oversold.
Also, on the H4 timeframe, an inverted hammer was formed indicating that bears can no longer push the price further. Finally, a new uptrend is being formed on the H4 chart (much visible on the H1 chart) which further suggests that bears are exhausted, and the bulls are gaining momentum.
A short-term long trade can be made, putting pending order (buy limit entry) around 1.15537 and the target at the next resistance point (around 1.16312) while SL can be placed around 1.15302. The RR of this trade is 1:3, making it good trade.
Disclaimer: Trading forex involves high risk, and is not suitable for all investors. Before deciding to trade forex, you should consider your investment objectives, level of experience, and risk appetite. The author is not liable for any loss of investment or capital during trading
On the weekly chart, the price is heading to a major support zone around the 1.15 level. This level has not been broken since July 20th, 2020.
Consequently, a descending channel was formed with price respecting the upper and lower trendline since January, 11, 2021. These channels seems to be a strong channel with price pulling back when the channels were tested. Also, the lower channel seems to be in a confluence level with the major support found at 1.15 giving a high probability of price reversal.
On further technical analysis, the stochastics and RSI on D1 timeframe indicate that the price is strongly oversold.
Also, on the H4 timeframe, an inverted hammer was formed indicating that bears can no longer push the price further. Finally, a new uptrend is being formed on the H4 chart (much visible on the H1 chart) which further suggests that bears are exhausted, and the bulls are gaining momentum.
A short-term long trade can be made, putting pending order (buy limit entry) around 1.15537 and the target at the next resistance point (around 1.16312) while SL can be placed around 1.15302. The RR of this trade is 1:3, making it good trade.
Disclaimer: Trading forex involves high risk, and is not suitable for all investors. Before deciding to trade forex, you should consider your investment objectives, level of experience, and risk appetite. The author is not liable for any loss of investment or capital during trading
Trade closed: target reached:
Our take profit has been hit at 1.6334 with a sweet profit of 75 pips.
Another EURUSD has been opened, you can check my next analysis i uploaded yesterday
Another EURUSD has been opened, you can check my next analysis i uploaded yesterday