Free Profitable Forex Newsletter
Hey! This is Philip with this week's trade idea of the Free Profitable Forex Newsletter!
https://archive.aweber.com/awlist5132826/GQB6N
EURCHF should still eventually move higher this year if everything goes as expected
Extrapolating from the November 5th email above, risk appetite is still the dominant mood in the markets. The harsh December lockdowns and emergence of the new strains of coronavirus have perhaps impeded the EURCHF rally then, which stopped just short of the 1.09 level in December.
However, lockdown measures are being eased again as the number of daily infections has started to stabilize again. There are a few more months until warmer weather comes in the Northern hemisphere, which should help in fighting the pandemic together with vaccines. Biden is inaugurated as the new US President, while “uber dove” Janet Yellen is the new secretary of the Treasury.
And all while EURCHF is testing an important support zone in the 1.07 - 1.0750 area. Time to buy again? Let’s look at the technicals below to see what would be the best levels to do so.
EURCHF is testing the 1.07 - 1.0750 support
EURCHF is in consolidation since summer 2020, and even the November rally didn’t lead to an upside breakout. That resistance in the 1.0850 zone is rock solid, and now the 100-week moving average (orange) has also come near it.
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From the bottom side, we have a rising trendline which encloses the consolidation into a triangle formation. The support trendline currently stands in the 1.07 - 1.0725 area, and the price is already reacting here with bounces recorded on the daily and lower timeframes. An additional bullish factor here is the 55-week moving average (blue), which presently stands at the 1.07 level.
So, the support in this 1.07 - 1.0750 area looks strong also, and is likely to prove as a good buying opportunity. Even if EURCHF only manages to rise to the previous highs at 1.0850, that’s still 100-150 pips of a potential upside move.
The daily chart below also confirms that the support area stretches all the way down to 1.07 and perhaps even somewhat below this round number level. Note the 200-day moving average here (red), standing at 1.0725 as an additional factor in this confluence support zone.
So, stops should be placed below the 1.07 level, and perhaps even better below the November low of 1.0660.
The first target, as mentioned above, is the 1.0850 resistance area at the previous highs. Longer-term, the 1.10 zone and higher levels still look reachable, as we noted in the trade idea sent in November.
Entry:
- Look to enter around current levels (1.0770);
- or near 1.07; the closer to 1.07, the better
Stop:
- Below 1.07, as described above
Targets:
- 1st 1.0850 resistance
- 2nd 1.10 area
- 3rd (longer-term) - 1.12 area
Trade signals from the past week
- January 14: Short EURJPY from 125.90; trade closed at 125.25 after failing to reach the 125.00 target level on a few close attempts = +65 pips profit
TOTAL: +65 pips in the past week
TOTAL: +3555 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.
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