As we are now in the Sunday open, here’s a review of four trades I’m in that I’ve held through the weekend.
I took this EURUSD long trade last week after sensing slowdown in the selling pressure. This is a key pair that I believe makes for a very nice swing trade given that it’s been in an uptrend since the beginning of 2017. In my earlier posts, I have posted successes of longing this pair and there’s no this trend is far from over.
Over on the weekly timeframe, you can better see that the next major resistance level is at the 1.21~ price level. My chart actually plots it slightly above the 1.21~ level, but for the sake of the whole number, it could be a bit lower.
Now back to this 12-hour chart I’ve posted. This is a first indication that we’ve seen this pair fail to make a lower low. In fact, the “lows” seem to be held supported at the 1.1688~ level. Unless this pair breaks below that level, I will continue to remain bullish. Last week’s economic schedule had no major ECB releases so this pair remained relatively quieter. This Friday’s speech could provide drastic volatility just before market closes.
The daily timeframe provides a better understanding of where I entered. As you can see, I was pretty hesitant at the 1.297~ level. I was actually initially bullish given how the price stalled on that level indicating a potential support. As soon as it broke lower, I took a small short trade to ride it lower. After a drastic selling day, it stalled for three more days and looks to be ranging for the fourth day on today’s open.
Ideally, I’d want to target profit taking at the low of the 1.266~ daily level. However, the 4-hour resistance 1.2907~ will provide an indication as to whether I need to look to begin exiting this trade. For the time being, I’m not too concerned about shorter term price fluctuations as I’ve already moved my stop loss past my entry level and taking a short position provides a positive swap charge.
I’m actually not a fan of trading this pair given the sometimes erratic price movements, but yet this is one of those instances where I got in last week. As annotated, a bullish bar followed by an even bigger bearish bar signals, to me, that selling is not yet over and I expected it to continue. While it continued for sixteen hours, there was suddenly an influx of buyers sending the price last Friday just before the market was about to close. This could be due to a series of position close-outs before the weekend. Nevertheless, I probably won’t be taking this trading this pair much in the future if I am able to get out of this trade at a reasonable price.
Over on the daily timeframe, you can see this pair breaking out of a wedge. I shorted it as it broke out and expect to hold onto it for the week ahead. The lower timeframe will provide a better idea of what exactly I’m looking out for.
I have a relative low plotted as a potential support zone. Given the heavy sell-off, price inched higher on Friday’s close as traders covered their positions. Depending on how today’s open play out, I may have to close out this trade if this is indeed an end to the bearish outlook. I highly doubt this will be the case, but it is a good idea to be prepared if it is.
These are the only four trades I have open for now. Stay tuned for more.