The Euro is reaching the top of a very well defined bearish channel. There is very strong resistance upwards and momentum is waning. Plus, there has been a clear divergence of price with momentum. Most likely there will be a strong drop to the 1.3 (or lower) region in the foreseeable future. To embellish stuff, the Risk/Reward Ratio on this trade is very low, which is a big plus
And... I was stopped out! It was a good trade and, what seemed, some sound analysis. The 4 takes to break resistance proved me right, but I lost money nonetheless!
picatris
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At this time we are at the 4th attempt to break current resistance. I'm really surprised it has hold this much (but of course I was not expecting 4 attempts!) This is not a good sign. Also the channel is broken once more and does not appear to go back to previous levels. I'm sticking to the trade, due mainly to the continued expected resistance upwards, and my stop is above it. Also, if price reenters the channel, I stick to my projection of 1.13. In other situations I would have dropped the trade entirely taking the current loss
KailashChandra
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can you show us the full channel... just for education purpose
picatris
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@KailashChandra, You can see how the channel was drawn just by dragging the published chart to the right by using your mouse. It should be obvious the highs and lows used for defining the channel!
KailashChandra
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@picatris, my bad, viewing post from mobile... just now EU gave a jawdroping move, whats ur take
picatris
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@KailashChandra, Yup, It could happen. As long as the resistance above is not crossed I am not worried. On the other hand if this (quite strong) up move fades today, the prospects for the bulls are quite dire. Until I'm stopped, the trade is valid :-)