On the Daily chart above, yesterday, after price broke below the major Weekly chart swing low that is also visible on the Daily chart as a major support level @ 93.85 (which we’ve highlighted using the blue broken line), price seems set to continue its downward move. The 93.85 level – since it was broken downward – has automatically turned to a strong resistance level, and as long as price stays below it, we should consider our downward move bias intact. However, as we could see, price is also at the base of a downward channel. This is a critical support area that we should be mindful of. Hence, we might want to see price break below Wednesday’s low @ 91.79 to buttress our downward move bias.
On the H4 chart above, from a day-trade perspective, we still have a bearish (downward) bias for this pair. However there are two critical support levels that we would like price to break downward to confirm our day-trade bearish bias: the most recent H4 swing low @ 92.50 (which we’ve highlighted using the upper blue broken line), and the Wednesday’s low @ 91.79 that we referred to on the Daily chart above (we’ve highlighted this using the lower blue broken line).The more aggressive ones among us should consider looking for a short trade set-up on the hourly if the most recent H4 swing low @ 92.50 is broken – but keep close eye on Wednesday’s low @ 91.79. The conservative ones among us should wait till price breaks below Wednesday’s low @ 91.79 – in addition to H4 most recent swing low that would have, by then, be broken.
Please, always remember that we need our hourly charts – using Fibonacci retracement levels and important resistance levels – to seek promising areas to take our short positions. Price pattern on the hourly must also be forming lower highs and lower lows; and note that our aim is to sell a rally in today’s down trend.
Also, PATIENCE is the key here: we need to patiently wait for the appropriate price patterns and movements. They might happen, and they might not.
P.S.:
Please, always remember that we need our hourly charts – using Fibonacci retracement levels and important resistance levels – to seek promising areas to take our short positions. Price pattern on the hourly must also be forming lower highs and lower lows; and note that our aim is to sell a rally in today’s down trend.
Also, PATIENCE is the key here: we need to patiently wait for the appropriate price patterns and movements. They might happen, and they might not.
P.S.:
As at the time of this posting @ 07:40 GMT on Fri. July 10, 2009, the EURUSD, GBPUSD and USDCHF pairs are firmly embedded in no-trade zones according to our day-trade parameters.
No comments:
Post a Comment