We have an overstreched move from friday, when EU was going up, while GU was going down, which rarely happens in such a way, so monday-tuesday, the move should correct. SL can be set near, above 8800, target between 8700-8740. The higher you set the SL, the bigger of a target you can have. 8700 would be my lowest target.
EU was bullish last week as expected and now we reached an interresting cross-road. The late friday move above 1.10 might have been a false break. So I would be careful with more longs until the 880-920 area is tested again. This area on EU is the 100 area on USDx at the same time, so it is very important. We should re-test this area next week, until then, its safer not to trade. From there there are 2 options, we bottom out between 880-920 and EU will continue above 1000, towards 1060, or we break it and EU will go down towards 790-810 and potentially lower. If we break lower, the first area to look for longs would be around 750 and if lower, then at the current double bottom, or lower, so low 600 numbers or even 450-500. Monday-tuesday will give us a clue as what to do. Maybe better to wait until thursday for some safe trades. Because this can break out either way for 300-400 pips, so not safe for scalpers who trade both directions.
Hello everyone. I am known under the name OnlineAddict on forexfactory. I have been a member there since 2014 and trading for over 10 years now. I mostly focus on currencies, but follow also stocks, cryptos and commodities.
