EURUSD was not good for me in the last week. I was short and got stopped out. Although last Friday the move was down, right now I believe most technical bearish signs have been erased, although I cannot fathom any fundamental reason for it to happen.
Momentum is definitely rising and higher highs and higher lows were formed. Plus, the last down move formed an almost perfect 50% retracement. The first goal post of 0.618 has been reached and I believe that the next one of 1.0 is next, and can happen just this week. To justify a stop, a new tentative channel (with ZERO confirmation - so caveat emptor!) has been drawn. I have then a definite target and a nice stop with a great risk/reward ratio. Depending on how the markets open this Monday, I will open my long position with these goalposts.
Nonetheless, mostly due to the absence of any fundamentals to justify it, I will reduce the size of my position
Momentum is definitely rising and higher highs and higher lows were formed. Plus, the last down move formed an almost perfect 50% retracement. The first goal post of 0.618 has been reached and I believe that the next one of 1.0 is next, and can happen just this week. To justify a stop, a new tentative channel (with ZERO confirmation - so caveat emptor!) has been drawn. I have then a definite target and a nice stop with a great risk/reward ratio. Depending on how the markets open this Monday, I will open my long position with these goalposts.
Nonetheless, mostly due to the absence of any fundamentals to justify it, I will reduce the size of my position