Euro decided to close at a very interesting price. right in the middle of a ranging channel we saw in early july as u can see by the arrows on left hand side of the chart. Now how do we trade from here. According to the rules when price brakes through the 89 it comes back to the 21, keeping in mind that it is a counter trend trade and we have 8 MA as a potential target too. Since the speed of the price is soo fast that a counter trend trade will be a high risk trade at this point. There will be some consolidation anticipated before london open on monday morning, during the asian session on sunday . The long tail on the current candle is a decent indication to go short for a few pips down to 8 MA . However Risk reward ratio has to be considered here. The price can go up to the recent highs of 1.3843 to 1.3852.+71 pips from current price. now price might not go there in one move but it is important to keep in mind before getting into a counter trade.I think stop loss could be above the recent high of the current candle which hit 1.3818. Now one is bound to think that with all these trend lines and fibs we can never pull the trigger. but consider them to help have a profit target and stop loss in mind and identify price action. you will notice alot of times price finds support on previous resistance , draw your trendlines and u will be amazed.Good luck trading this week. Please feel free to comment or correct or add to this analysis. Best Regards.
Nadia.
Nadia.
TRADE WHAT YOU SEE... FOCUS ON SUCCESS