Now that the summer dull-drums are over (trader speak for quiet markets, when many traders are on holidays and there is less liquidity in the markets), there definitely appears to be some movement coming back into the currency pairs. These are the trades I have on my radar for this week:
Reasons for trade: at 78.6% fib, 200 ema on daily, 55 ema on weekly, great risk to reward ratio
I will enter the trade from the 4 hour chart based on bearish candle formations.
Alternative: If this pair fails to hold at the .8078 level, I will wait for a clear break above this level, followed by a pullback, to go long. My target for this trade will be .8160
Reasons: intersection of trendline, support line, 23.6% fib and is a whole number, great risk to reward ratio
Reasons: break of support followed by pullback, major support line, whole number, 23.6% fib just below
Let’s see how the week pans out now that some of the momentum is returning to the markets.