Hello Fellow Trader!
The DXY has strengthened this week due to money pouring out of equity markets seeking safer yields.
The consensus for EURs interest rate decision today is no change but the ECBs monetary policy press conference will help paint the picture on the fate of EUR/USD.
As short-term traders, achieving at least 45-50% win rate is a standard probability when involved in a 50/50 market. What separates profitability is the profit ratio.
If you target a minimum of 3R – 3 reward to every 1 risk, with a 45-50% win rate, you chance of success is quite strong over a large amount of trades.
When looking for these trades, make it your goal to only take trades that offer 3R+ possibilities, have defined risk levels, and have confirmed execution signals that meet several variables.
Key Points:
- Price holding below the 200 EMA
- Price holding above the 50 EMA
- Looks like a flag for upside that can trap long positions.
- Resistance at 1.1825 on 4-hour time frame showing strength for downside.
- Price meeting 61.8% Fibonacci of prior range
Key Levels:
Support - 1.17550, 1.17140
Resistance – 200 EMA, 1.18250, 1.18575
Entry Zone:
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – 1.18185
Supporting Entry – 1.18100
Candle Reversals for entry
- Bearish Shooting Star
- Bearish Engulfing
- Bearish Dark Cloud Cover
The Risk:
As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.
If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.
IF: Price breaks above 1.18400 level and/or violates 200 EMA – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.
Reward / Reward Targets:
Optimal Entry 1.18185 – Target 1 1.17550 = 3x Reward to Risk
Optimal Entry 1.18185 – Target 2 1.17140 = 5x Reward to Risk
Supporting Entry 1.18100 – Target 1 1.17550= 2.1x Reward to Risk
Supporting Entry 1.18100 – Target 2 1.17140= 3.5x Reward to Risk
The DXY has strengthened this week due to money pouring out of equity markets seeking safer yields.
The consensus for EURs interest rate decision today is no change but the ECBs monetary policy press conference will help paint the picture on the fate of EUR/USD.
As short-term traders, achieving at least 45-50% win rate is a standard probability when involved in a 50/50 market. What separates profitability is the profit ratio.
If you target a minimum of 3R – 3 reward to every 1 risk, with a 45-50% win rate, you chance of success is quite strong over a large amount of trades.
When looking for these trades, make it your goal to only take trades that offer 3R+ possibilities, have defined risk levels, and have confirmed execution signals that meet several variables.
Key Points:
- Price holding below the 200 EMA
- Price holding above the 50 EMA
- Looks like a flag for upside that can trap long positions.
- Resistance at 1.1825 on 4-hour time frame showing strength for downside.
- Price meeting 61.8% Fibonacci of prior range
Key Levels:
Support - 1.17550, 1.17140
Resistance – 200 EMA, 1.18250, 1.18575
Entry Zone:
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – 1.18185
Supporting Entry – 1.18100
Candle Reversals for entry
- Bearish Shooting Star
- Bearish Engulfing
- Bearish Dark Cloud Cover
The Risk:
As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.
If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.
IF: Price breaks above 1.18400 level and/or violates 200 EMA – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.
Reward / Reward Targets:
Optimal Entry 1.18185 – Target 1 1.17550 = 3x Reward to Risk
Optimal Entry 1.18185 – Target 2 1.17140 = 5x Reward to Risk
Supporting Entry 1.18100 – Target 1 1.17550= 2.1x Reward to Risk
Supporting Entry 1.18100 – Target 2 1.17140= 3.5x Reward to Risk
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
👉 Discord: @tradetheday discord.gg/3xF8xs4RRW
👉 Facebook: @tradetheday facebook.com/tradetheday
👉 Instagram: tradethedayfx instagram.com/tradethedayfx
👉 Telegram: t.me/tradetheday
👉 Facebook: @tradetheday facebook.com/tradetheday
👉 Instagram: tradethedayfx instagram.com/tradethedayfx
👉 Telegram: t.me/tradetheday
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.