EURUSD testing major resistance, prepare to sell
EURUSD
May 8, 2017, 04:52
Sell below 1.0980. Stop loss at 1.1033. Take profit at 1.0880.
Reason for the trading strategy (technically):
We are now seeing price test major resistance at 1.0980 (multiple fibonacci extensions, Elliott wave theory) and we expect a drop from this level to at least 1.0880 support (Fibonacci retracement, horizontal swing low support).
Stochastic (55,5,3) is also seeing major resistance below the 95% level where we expect a drop from.
Correlation analysis: EURUSD has a strong negative correlation with USDCHF which means they usually move in opposite directions. We are expecting a drop on EURUSD and similarly USDCHF which means it is best to exercise caution on this trade.
EURUSD
May 8, 2017, 04:52
Sell below 1.0980. Stop loss at 1.1033. Take profit at 1.0880.
Reason for the trading strategy (technically):
We are now seeing price test major resistance at 1.0980 (multiple fibonacci extensions, Elliott wave theory) and we expect a drop from this level to at least 1.0880 support (Fibonacci retracement, horizontal swing low support).
Stochastic (55,5,3) is also seeing major resistance below the 95% level where we expect a drop from.
Correlation analysis: EURUSD has a strong negative correlation with USDCHF which means they usually move in opposite directions. We are expecting a drop on EURUSD and similarly USDCHF which means it is best to exercise caution on this trade.