EUR/USD may continue bullish move till it gets to 1.07177 then reverses to continue bearish trend. If you check the weekly Time frame, we can see that the bearish trend isn’t over.
2 Likes
Do you think it will get to the 1.07177 before the bearish continuation.? Why? It stated with a gap down. Or what do you think about it?
Well, the bullish move to 1.07177 may continue on the condition that price breaks that resistance zone of 1.06170. Refusal of price to break through that resistance level and form a double top may insinuate a reversal to continue bearish trend but when it breaks the resistance level and keeps going to the upside, you would notice there is a strong bearish candle on the 4hr Time frame on the left side, it is very possible that there is a chance for liquidity sweep/grab in that zone hence I placed my sell limit at 1.07177 so I don’t get swept off by a liquidity grab. But if price doesn’t get to that point, I would be looking for a strong bearish reversal move possible in the form of a bearish displacement move (three consecutive red candlesticks), then I would enter a sell position upon retracement/retest to the nearest support or supply zone (if any supply zone is created), then swing it all the way down… I’ll be looking to get 1600 points (160 pops) in profit. Those are my own expectations. I welcome other ideas
I have a rule to “NEVER TRADE AGAINST THE TREND”.
2 Likes
The dollar index looks relatively strong this morning.
Yes but as per the EUR/USD and some other related pairs, a gap down was created at the opening of the new week asian session and as per the algorithm of price movement, price will always move to close up gaps so I’m just observing price movement till now. Like I said, I only plan on selling in this bearish market.
1 Like
How many days or hours does it take to close this type of gap
No one can tell when a gap would eventually be filled. It all depends on how the market wishes to move. All we can do is follow price actions. But like I said, I intend to only sell in this bearish trend. Let’s see how it goes …