Yesterday the EURUSD rallied again with a wide range and managed to close near the high of the day, furthermore closed above the previous day range, suggesting a strong bullish momentum.
The pair continues to close above the 10 and the 50-day moving averages that are acting as dynamic support, and closed for the first time in three months above the 200-day moving average.
The key levels to watch are: The daily resistance at 1.1236, the daily resistance at 1.1097, the 200-day moving average at 1.1028 (support), the 10-day moving average at 1.0874 (support) and the 50-day moving average at 1.0893 (support).
On January 6. I posted these signals off the weekly chart.
Weekly chart: The weekly chart shows a price consolidation with currently 6 bars. As I have written before, the 6th bar in consolidation is the most difficult to trade and should be avoided. There are 3 legitimate MAJOR entry signals visible. Buy-stop at the high from last week (1.0991 on our chart) plus 1 pip (ASK price) Buy-stop at the high from 3 weeks ago (1.1058 on our chart) plus 1 pip (ASK price)
The low of 5 weeks ago is also a legitimate MAJOR entry signal as it is a down-hook. (1.0515 minus 1 pip BID price) ------------------------------------------------------------------------------------- Either one of the buy-stop entries would have worked and currently are about 200 pips plus. If you read my entire posting from January 6. you will see that there was also a buy-stop entry suggested off the monthly chart. It was a minor entry signal, but worked as one can see.
Now it is just a matter of managing the SL properly to maximize the trade's profit.
I also mentioned many times, that a price consolidation cannot consist of more than 10 bars. This weeks bar is Nr. 10 and therefore the break could be traded legitimately.
The suggested sell-stop entry was never reached.
Major trade entry signals have a very high success rate, especially when using long-term timeframes, like daily, weekly and monthly charts. They are easy to trade, as there is plenty of time to place the trade.
A higher risk-factor can also be used with majors on long-term charts.
The simplest way to trade these trades is, to place the orders and just wait. They are much more lucrative and require very little maintenance as compared to intraday charts, which are very time consuming to trade and at the end of the day there is hardly ever any monetary reward.
Yesterday the EURUSD continued the rallied but with a narrow range and managed to close near the high of the day, furthermore closed above the previous day high, suggesting a strong bullish momentum.
However it made a pause on mid-term resistance at 1.1236 possibly waiting for today’s nonfarm payrolls number. The pair continues to close above the 10, 50 and the 200-day moving averages that are acting as dynamic support.
The key levels to watch are: The daily resistances at 1.1556, other daily resistance at 1.1460, daily support at 1.1097, the 200-day moving average at 1.1028 (support), the 10-day moving average at 1.0965 (support) and the 50-day moving average at 1.0910 (support).
AVERTISSEMENT SUR LE RISQUE ÉLEVÉ : Le trading de devises comporte un niveau de risque élevé qui peut ne pas convenir à tous les investisseurs.
Leffet de levier crée un risque supplémentaire et une exposition aux pertes. Avant de décider de négocier des devises, examinez attentivement vos objectifs dinvestissement, votre niveau dexpérience et votre tolérance au risque.
Vous pourriez perdre une partie ou la totalité de votre investissement initial. Ninvestissez pas largent que vous ne pouvez pas vous permettre de perdre. Renseignez-vous sur les risques associés au trading de devises et demandez conseil à un conseiller financier ou fiscal indépendant si vous avez des questions.
Toutes les données et informations sont fournies "en létat", uniquement à titre dinformation, et ne sont pas destinées à des fins de trading ou de recommandation.
Les performances passées ne sont pas indicatives des résultats futurs.