EURUSD has been Bullish for the last 4 days. The last day’s Daily candle was a big Bullish candle, but it seems that the price closed within a level of Horizontal Resistance. Moreover, the same level is a level of Resistance of the Down Trending Channel, which has been followed by the D1 EURUSD chart. It suggests that the pair might make its next move towards the South. Let us have a look at the D1 EURUSD chart.
EURUSD Price Action Analysis – 19th Nov 2018
The level of 1.14200 is the level of Horizontal Resistance. The price had reacted to the level earlier on a number of occasions. The Down Trending Channel’s Resistance lies right over there as well. This makes this point a very significant point called Dynamic Resistance. If we get a Bearish Engulfing Daily Candle right on the Resistance level, then selling the pair would get us green pips. Let us have a look at the summary of the trade
- Sell Limit Order: 1.14200
- Stop Loss: 1.15200
- Take Profit: 1.11400
- 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
Since Friday’s Daily candle was a long bullish candle, so we might not get that Daily Bearish Engulfing Candle today. It might be produced tomorrow or even day after tomorrow. In a word, we have to be very patient here to be able to take the entry. Same goes at the time of profit taking as well. We might have to wait 4 to 5 days to achieve the target; must use a trading lot that suits our balance since all the equations are based on the Daily chart here.
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