EURUSD → Descending Wedge Support! Back up to 1.11!?
EURUSD fell from the Resistance Zone into a two-legged pullback around the Daily 30EMA. There isn't much for bear strength, so are we in a position to long?
How do we trade this? 🤔
A long could definitely be justified if we get a strong bull close above the Daily 30EMA. We have a two-legged pullback from the Resistance Zone, several doji and weak bear bars showing weak bears, and RSI, while below the Moving Average, is at 47.00 and has room to move up. I suspect that if we get that strong bull bar, the RSI will rise above the Moving Average, which would support the long position suggested.
💡 Trade Idea 💡
Long Entry: 1.09500
🟥 Stop Loss: 1.08100
✅ Take Profit: 1.10900
⚖️ Risk/Reward Ratio: 1:1
🔑 Key Takeaways 🔑
1. Two-legged pullback from the Resistance Zone
2. Multiple doji and weak bear bars as the price falls, showing weak bears
3. Support near the Daily 30EMA
4. RSI below Moving Average, but with a clear strong bull bar closing above the 30EMA, that could change
5. Once a strong bull bar closes above the Daily 30EMA, it's reasonable to long a 1:1 scalp
💰 Trading Tip 💰
It's reasonable to take half profits at the first resistance target in a long trade, or the first support target in a short trade. Using a 1:1 Risk/Reward Ratio for your first target, you can move your stop loss up to your entry price, locking in profits. This allows you to watch the rest of the trade execute without worry of losing money. This helps improve trading psychology and the equity in your account.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
Like 👍 and Follow to learn more about:
1. Reading Price Action
2. Chart Analysis
3. Trade Management
4. Trading Psychology
How do we trade this? 🤔
A long could definitely be justified if we get a strong bull close above the Daily 30EMA. We have a two-legged pullback from the Resistance Zone, several doji and weak bear bars showing weak bears, and RSI, while below the Moving Average, is at 47.00 and has room to move up. I suspect that if we get that strong bull bar, the RSI will rise above the Moving Average, which would support the long position suggested.
💡 Trade Idea 💡
Long Entry: 1.09500
🟥 Stop Loss: 1.08100
✅ Take Profit: 1.10900
⚖️ Risk/Reward Ratio: 1:1
🔑 Key Takeaways 🔑
1. Two-legged pullback from the Resistance Zone
2. Multiple doji and weak bear bars as the price falls, showing weak bears
3. Support near the Daily 30EMA
4. RSI below Moving Average, but with a clear strong bull bar closing above the 30EMA, that could change
5. Once a strong bull bar closes above the Daily 30EMA, it's reasonable to long a 1:1 scalp
💰 Trading Tip 💰
It's reasonable to take half profits at the first resistance target in a long trade, or the first support target in a short trade. Using a 1:1 Risk/Reward Ratio for your first target, you can move your stop loss up to your entry price, locking in profits. This allows you to watch the rest of the trade execute without worry of losing money. This helps improve trading psychology and the equity in your account.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
Like 👍 and Follow to learn more about:
1. Reading Price Action
2. Chart Analysis
3. Trade Management
4. Trading Psychology
-Joe Dean
Trader Engineering Course (Coming Soon!)
TraderEngineering.com
Trader Engineering Course (Coming Soon!)
TraderEngineering.com
EURUSD broke down from the descending wedge and below the Daily 200EMA. We never did get the strong bull close, so the premises of this analysis never played out so we could take the long.
At this stage, I would wait for the price action to get closer to the Support Zone and look for a bull signal and confirmation candles to enter a long trade. Shorting on the lower timeframes is also reasonable.
A new EURUSD analysis will be coming soon!