Long Term Bullish Trade Idea.
Looking at the Fibbonnaci retracement move of the June 26 Brexit vote, we have seen prices bounce off the 23% Fib level and rebound back down with the recent Dollar strength which has seen price dip into the oversold territory this can also been seen in
EURUSD
.
An up trend channel can be spotted coming off the lows of the 2016 sell off, this uptrend channel was tested twice in 2017 January and March where it provided support and confirmation of the trend line. Price has not shown any real conviction of breaking this uptrend channel over the past 5 weeks where we saw rallies down and a bounce right off the uptrend channel (1.29800) last week Thursday the 19th of January.
This bounce off support of the uptrend channel comes just above the .618 fib retracement level (1.29638 ) of the 2016 Brexit sell off.
When trading the Elliot Wave theory, we can see wave two also coming to a halt on the uptrend slope, a third wave from here can be very profitable if played smartly and money management kept in mind and considered before entering the trade.
In terms of an entry now, i will be looking to fade this one, looking for any possible catalyst from the weeks economic calendar.
I will be using a trailing stop with this trade to take off the initial risk and keep pips on the table with my initial Targets, 1.37758 & 1.42781
My stop and Bullish Invalidation will be 1.2800.
Remember to always trade whats in front of you in the markets and always keep your risk management rules un-broken.
Looking at the Fibbonnaci retracement move of the June 26 Brexit vote, we have seen prices bounce off the 23% Fib level and rebound back down with the recent Dollar strength which has seen price dip into the oversold territory this can also been seen in
EURUSD
. An up trend channel can be spotted coming off the lows of the 2016 sell off, this uptrend channel was tested twice in 2017 January and March where it provided support and confirmation of the trend line. Price has not shown any real conviction of breaking this uptrend channel over the past 5 weeks where we saw rallies down and a bounce right off the uptrend channel (1.29800) last week Thursday the 19th of January.
This bounce off support of the uptrend channel comes just above the .618 fib retracement level (1.29638 ) of the 2016 Brexit sell off.
When trading the Elliot Wave theory, we can see wave two also coming to a halt on the uptrend slope, a third wave from here can be very profitable if played smartly and money management kept in mind and considered before entering the trade.
In terms of an entry now, i will be looking to fade this one, looking for any possible catalyst from the weeks economic calendar.
I will be using a trailing stop with this trade to take off the initial risk and keep pips on the table with my initial Targets, 1.37758 & 1.42781
My stop and Bullish Invalidation will be 1.2800.
Remember to always trade whats in front of you in the markets and always keep your risk management rules un-broken.
Any comments and ideas will be appreciated.