Free Profitable Forex Newsletter
Hey! This is Philip with this week's trade idea of the Free Profitable Forex Newsletter!
EURCHF rallied strongly in February driven by vaccine optimism, but then the move was reversed starting in March. The EU leadership's failure to deliver fast vaccinations to its citizens came into view and was the culprit behind the EUR's correction since then. It seems that EURCHF is
moving almost exactly according to the roadmap that we laid out back then. You can view that newsletter from March 12, along with the charts here.
However, the longer-term fundamentals for EURCHF remain skewed to the bullish side. With the global recovery intact and with the speed of vaccinations set to increase globally, the long-term EURCHF uptrend should eventually resume as well.
EURCHF is still likely to trade at levels above 1.10 in the coming months.
Better entry levels are likely to come
The price is getting near to the 1.09 potential buy area that we discussed in March. While EURCHF is already showing signs of a rebound on the daily chart, we would suggest waiting for lower levels before getting in.
The history of EURCHF price action shows us that the pair rarely reverses sharply at support areas. Instead, it tends to reverse after a prolonged basing formation has played out. We can use this to our advantage by waiting for lower levels to come and higher confirmation of a reversal.
The whole basing process can take a few more weeks in the current set of circumstances. The chart suggests that EURCHF has time until the end of May to test the whole 1.0850 - 1.09 support area. Converging with this narrative is the short-term downtrend that suggests that EURCHF bears
have more fuel to drive the price a tad lower (see chart).
Join Danielle Shay (Director of Options at Simpler Trading) and market expert Marc Chaikin, for a live trading event!
You'll find out how she built an extraordinary trading account and manages to find high-probability
setups over and over again-and how you can, too!
It's also worth watching momentum indicators like the RSI, which may provide confirmation when the bottom is in, either in the form of deeply oversold levels or a bullishly divergent low.
The multiple highs from 2020 at the 1.0850 zone form a solid band of support. The rising weekly trendline provides support slightly higher, around 1.09. Aiming to enter as near as possible toward this 1.0850 - 1.09 support area will allow the advantage of placing a tighter stop loss on potential
long entries.
Entry:
- Wait for EURCHF to form a base as described above, and look to enter long toward the 1.09 - 1.0850 support area.
Stop:
Targets:
- 1st - 1.10
- 2nd the 1.1150 March high
Trade signals from past weeks
- April 22, 2021 – Short NZDCAD from 0.8975 closed at 0.8800 (05/07), 50 pips ahead of 0.8750 target as price entered a range = +175 pips profit
TOTAL: +175 pips profit in the past week
TOTAL: +3885 pips profit since October 1, 2018
If you have any questions or feedback, don't hesitate to reply to this email.
Thank you!
High Risk Warning: Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.
Any opinions, news, research, predictions, analyses, prices or other information contained in this newsletter is provided as general market commentary and does not constitute investment advice. FX Trading Revolution will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
|
|
|
|
