Hard times for EURUSD to move higher above confluence of .5 Fib retracement from (1,26-1.044) and major resistance and psych level at 1.15. Test of 1.15 with double top formation as this is significant level followed by retracement towards 1.138 and forming Head and Shoulders pattern at resistance is anticipated. Should 1.15 fail to provide resistance (as a result of Dollar index passing 93 mark and moving towards 90 levels) 618 Fib levels provide next level of resistance. Short term advances providing great opportunity to enter selling side of the marker at higher levels.
Any thoughts on where to put a stop loss and where to cover shorts on weakness? Or is this a journal entry?
FX_Trader_Analyst
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Thanks,timwest.
If breaks above 1.15 I would look for short entry around 1.164 with stop above .618 Fib. Alternatively if it tests 1.15 as higher high but won't break through I would wait to see reversal patten or Dragi to talk down EUR.
Personally I'm waiting for right entry to rejoin bearish long term view and not fighting for few pips on short term moves.
What's your view?
timwest
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I agree with "rejoining bearish long term view". I always like to know where the level is where the trade becomes invalid. If we all label "invalidate" levels on our charts, it will make our charts more useful for everyone. Thanks for your reply.