Earlier today, we concluded today’s bias is to go short.
The hourly chart is currently forming a tradable pattern. Price seems to have bottomed temporarily @ 1.3875. Hence, we expect price to retrace to the area between 1.3935 and 1.3998 (which is the area between the 50% and 100% fib. retracement levels – drawn from the most recent hourly swing high to the current price-bottom). Let’s seek to sell around this area. If price exceeds the 1.3998 level upward, our bearish bias is no more valid and we enter a no-trading zone. Our profit target is @ 1.3841.
Also, if price breaks below 1.3875 before retracing to the sell-area, we’ll have to redraw our Fibonacci tools using a new bottom & the most recent hourly swing high to determine new potential areas to sell.
If necessary, please use the 15min and 5min charts to have a clearer view of price action on the hourly chart.
Please keep your risk low. Don’t risk more than 2% of your capital. Personally, I risk about 0.5% per trade; and each trade has a potential profit target of 1% or more – based on my exit levels.
P.S.:
Similar Short trade and Long trade set-ups are forming on the GBPUSD and USDCHF pairs respectively.
Also, keep in mind the ISM Non-Manufacturing PMI news release at 14:00 GMT – be wary of possible price volatility during this period.
The hourly chart is currently forming a tradable pattern. Price seems to have bottomed temporarily @ 1.3875. Hence, we expect price to retrace to the area between 1.3935 and 1.3998 (which is the area between the 50% and 100% fib. retracement levels – drawn from the most recent hourly swing high to the current price-bottom). Let’s seek to sell around this area. If price exceeds the 1.3998 level upward, our bearish bias is no more valid and we enter a no-trading zone. Our profit target is @ 1.3841.
Also, if price breaks below 1.3875 before retracing to the sell-area, we’ll have to redraw our Fibonacci tools using a new bottom & the most recent hourly swing high to determine new potential areas to sell.
If necessary, please use the 15min and 5min charts to have a clearer view of price action on the hourly chart.
Please keep your risk low. Don’t risk more than 2% of your capital. Personally, I risk about 0.5% per trade; and each trade has a potential profit target of 1% or more – based on my exit levels.
P.S.:
Similar Short trade and Long trade set-ups are forming on the GBPUSD and USDCHF pairs respectively.
Also, keep in mind the ISM Non-Manufacturing PMI news release at 14:00 GMT – be wary of possible price volatility during this period.
Hi Tunji. This is a nice one. But you didn't say if you traded on any of these analyses. Also, in future you may wish to advise when (i.e. price level) to enter/exit market.
ReplyDeleteThanks for keeping it real, bro.
Hello Il Divo,
ReplyDeleteActually, I base all my day-trades on these analyses. I placed limit orders for the EURUSD, GBPUSD & USDCHF pairs today – risking 0.5% or less of my capital per trade. Although, I usually set expiration for the limit orders @ around 18:00 GMT as I often would not be available to monitor the trades after that time. So, except my limit orders are already triggered before 18:00 GMT, I usually pass the trades.
Regarding entry/exit levels, I’ll endeavor to make them clearer in subsequent posts. Thanks for that.