EURUSD has really tumbled over the past week -- the chart below, a daily chart of EURUSD, illustrates.
As we are approaching a key support level, the 50 SMA, and a major Fibonacci retracement level, now may be a good time for bears to cover, and for longs to begin eyeing the pair more closely. However, there were numerous signs that EURUSD was due for a pullback.
First, there were the reversal candlesticks that emerged when EURUSD crossed 1.38.
Moreover, if we apply a price channel to the pair going back to early July of 2013, we can see the reversal candlesticks appeared when price was almost at the top of the channel. That we are now at the bottom of the channel further strengthens the case for bulls.
Personally, I don't like to trade against the trend -- and so I'm more interested in buying the dip than in selling the rally.
As always, be sure to share your thoughts and questions in the comments section below.
As we are approaching a key support level, the 50 SMA, and a major Fibonacci retracement level, now may be a good time for bears to cover, and for longs to begin eyeing the pair more closely. However, there were numerous signs that EURUSD was due for a pullback.
First, there were the reversal candlesticks that emerged when EURUSD crossed 1.38.
Moreover, if we apply a price channel to the pair going back to early July of 2013, we can see the reversal candlesticks appeared when price was almost at the top of the channel. That we are now at the bottom of the channel further strengthens the case for bulls.
Personally, I don't like to trade against the trend -- and so I'm more interested in buying the dip than in selling the rally.
As always, be sure to share your thoughts and questions in the comments section below.
by Simit Patel via InformedTrades
No comments:
Post a Comment