We have had a good day today, courtesy of well plotted Fibo levels. If you are with me, you must have had two goods trades (EURUSD – Next dip to 1.0845 looks like a buying opportunity & short EUR/USD…) in EUR/USD.
Well, moving on here is how I prefer to take a trade in EUR/USD pair. First of all I would like to stay out of the pair now and would consider fresh trade tomorrow at London opening depending on what the trend line tell me
Take a note of the following –
- Rising channel (a) – resistance at 1.1517 & support at 1.1122
- rising trend line (pink) (b)
- another rising trend line drawn from Mar 2015 low-april 2015 low and extended (c)
As of now, both a and b are support levels seen at 1.1122 and 1.1030 and c is resistance at 1.1265
- If I see a daily close above 1.1122, I would open a long trade aiming for 1.12 levels
- If I see a close between a (support) and b, I would avoid trading the pair
- If I see a break/daily closing below b, I would go short on the pair.
There are other technical levels. but I would take my trades depending on the trend line and may consider exiting/booking out by looking at other key technical levels.