EURUSD produced a Bearish Daily candle on the last Friday. The Daily candle came out as an Inside bar, but the H4 chart suggests that there is a strong possibility that the pair might head towards the South if it makes a breakout towards the downside. Let us have a look at the H4 EURUSD chart.
EURUSD Price Action Analysis – 15th Oct 2018
The level of 1.15655 is the level, which has the potential to be a strong level of Resistance. The price reacted on this level earlier. If the level is held by the H4 candles and it ends up producing a strong Bearish H4 candle, then a breakout at the level of 1.15400 would lead the price to go towards the level of 1.14550 without having that many pauses. Let us have a look at the summary of the trade…
- Sell Stop Order: 1.15400
- Stop loss: 1.15655
- Take profit: 1.14550
- Validity: 72 hours
- Whenever possible, move the stop loss to the entry price and whenever you want, you can take profit anytime as long as you feel comfortable
Most of the GBP and EURO pairs started with a gap today. The GBP pairs started with a bigger gap than the EURO pairs. For the price action traders, Gap is something that holds them back and makes them wait more to be confirmed about the Trend. Since there is a gap, a correction often ends up producing a new trend. Thus, we got to be careful when there is a gap. If you have a close look at the minor time frames, there is always some gap to start with on Monday. However, if it is evident on the charts like H1 or H4, you have to take extra care about it.
The post EURUSD Price Action Analysis – 15th Oct 2018 appeared first on Advanced Forex Strategies.
from Advanced Forex Strategies
No comments:
Post a Comment