EURUSD Bounce Off Support

Yesterday (12/10 Sunday night in the Americas), I alerted our subscribers on an entry for the EURUSD. It recently bounced off a trend line on the Daily chart as shown below.

Daily Chart of EURUSD for 12/10/17

For those familiar with the Ichimoku Kinko Hyo, you will also note a bounce off the Kijun-sen, which nearly matches the bottom of the kumo. A classic kumo acting as support scenario. The tenkan/kijun pattern is itself bullish, and even though it recently started to flatten, there is still a decent gap. These were enough of a confluence of bullish indicators that I entered the trade myself, and also alerted on it. My initial profit target, or limit, is at 1.1950, and my stop loss is at 1.1695, for a reward to risk of 1.5:1.

Zooming out of the chart shows we are still in a bullish trend, though within a current retracement/consolidation pattern.

EURUSD Daily Chart for 12/10/17, zoomed out

While no trade comes without risk, this one has enough in our favor to enter. It’s been more than 24 hours since I alerted, and I picked this as our share for the week. If you want to get all our alerts in real time, consider signing up for our signal service.

It bears highlighting that this week has multiple announcements coming out, including one from the Fed which may have a big impact on all USD pairs. We will either be exiting this trade before the announcement or adjusting stops and limits. Make sure you are always aware of the calendar of events. Even more important in this case where we have let our technical analysis dictate our entry entirely. While I do have a generally bullish stance on the EURUSD for fundamental reasons, those didn’t factor into my decision in this case, though they certainly didn’t hurt.

Trade safely! And use our comments section below to give us feedback or share your trading results.

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Founder and Director of Special FX Academy, Andres is now a full time trader, mentor, and writer. In the past, Andres has held director level positions at venerable trading exchanges including New York Stock Exchange, Euronext, and Fannie Mae. Buy his Forex Trading book here!

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Today's Fed Rate Decision and Why Fundamentals Matter - Special FX Academy
4 years ago

[…] the start of the week we alerted on a buy opportunity for the EURUSD. It was based on technicals, but we were very mindful that at 2pm ET today, Wed December 13th, the […]