I am looking to short EURJPY down to the 2 support levels I have marked on the chart. Strong bullish move over the past 2 weeks and the daily trend is considered bullish so I will take profit at the levels marked.
I anticipate a higher low made on the daily chart next but still a good chance to get some profit from a counter trend short.
I feel like this is a high probability setup. We got two fibs that align together, an upper trend line that is being respected. We also have a strong area of support and resistance. Finally to put it all togther we have a nice evening star formation.
- Pennant chart pattern formed indicating a bullish continuation of trend.
- Wait for confirmation candle
- On the W1 timeframe price is respecting the 61.8% level
- H1 timeframe is showing an uptrend and price retraced within the pennant.
- We are looking for price to break outside of the pennant and retest it before entering the trade
i am trading to catch the pull back on this trade, overall trend is down. Will be looking to catch a quick 50 pips of this pair. We have a strong S/R level, price respecting the -27.2 extension level and also the bottom trendline. All this together builds a high probability trade.
- Downtrend is getting weaker as price is struggling to make a lower low
- Price is currently at a weekly resistance so therefore; it's a bit of a premature entry for a buy
- As price is on a downtrend we would feel comfortable selling but need further confirmation on the H1
- The support level has been held since 2016 and price has touched it more than 3 times...
This is the more detailed entry for my long position. I shared this set up previously and was waiting for the sell off down to my buy zone.
All analysis is on the chart.
TP 1 is the previous resistance and fib -0.618 extension
TP2 is longer term at 0.66