EUR/USD
Weekly Trend direction: Bearish
Weekly trend reversal level: 1.4050
Key G7 resistance levels: 1.4050
Counter-trend and scalping opportunities:
Strategy: Whilst below the weekly trend reversal level sell rallies to resistance levels after an entry signal.
Today’s trade suggestion: The euro has been ranged for the past two weeks – stuck below 1.4100 and supported by
1.3700/3800. This means that weekly direction is not clear, and trading in either direction could yield profits. However, Last week DID have a lower high and a lower low, and we are still (just) below the reversal level at 1.4050. We also have a potential “one up/one down” weekly candle pattern, signifying that we may have a top in place. Our first trade for the week is a small short on the euro at 1.4030, with stops above 1.4050. If stopped out, we’ll re-evaluate.
Summary: Selling 1.4030, stops above 1.4050. If stopped, we’ll re-evaluate.