CHART ART: EUR/USD RIPPING FACES OFF SHORTS
GOOD AFTERNOON STEEMIT!
Are you short EUR/USD?
I know the feeling...
Last time I posted a EUR/USD blog, I was looking to build a short position off the confluence of resistance at range and channel tops. But as you can see, price was not kind and the -1 unit stop out came pretty swiftly.
That is at least one good thing about forex trading around levels like I do. When you're wrong, you know you're wrong pretty quick and momentum will punch you in the face to the point that you don't want to emotionally get back in and revenge trade.
BUT!
There's always another trade, and with this latest rip higher it might have come sooner than expected!
EUR/USD
I often speak about trading on the side of support or resistance holding, but as you can see below, the strategy works just the same after a breakout.
The key is always to be going WITH market momentum and following the path of least resistance. If a level is holding, then you go with it. If a level has broken out then you go with that.
It really doesn't take a rocket surgeon to see which way momentum is headed and to understand that you want to be on its side.
Daily:
Taking a look at the daily, it's the same channel top that we've been watching before.
It's a pretty self explanatory level and you can see that it's no longer holding.
Hourly:
When I zoom into the hourly though, this is the chart that I hope hasn't left without me...
The first arrow I've marked was already on my chart indicating a level that I wanted to short from. It obviously didn't work out, but look at the way that the exact same level is then used for buyers.
If this breakout is in fact sustained, we now see how disciplined and patient we are as a traders. We have the wait for the right pullback into short term previous resistance turned support.
Keep an eye on the @forexbrokr Twitter account as things unfold for live intraday charts and please leave a comment with your own chart or views on the blog below.
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I had a brief view at it... 24 hours ago, thinking about the resistance. I was shure about the ability to break resistance, but I did not go long. So far. ;-) OK let's watch daily candle.
I feel you!
For me, it's waiting for it to pull back and seeing if it can retest either the daily trend line, or just that intraday swing high around 1.148ish
Retrace is coming... but it will go up until the end of the week. IMHO ;-)