Quick look: Play the trend lines in EUR/USD

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

Daily Chart

EURUSD D1 (03-10-2016 2141)

Take a note of the following –

  1. Rising channel (a) – resistance at 1.1517 & support at 1.1122
  2. rising trend line (pink) (b)
  3. 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.

 

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