Looking specifically at the Daily and 4H charts in this situation I’d feel like it’s not an optimal trade. Here’s why:
- Daily chart: That huge BUEB took us right up to a significant resistance level we can definitely see on the daily. We don’t buy into resistance, only at support.
- 4H chart: Looking at the 4H, we now see signs of a support forming HOWEVER the price action at that support level don’t suggest a very strong bullish push so now, we’re left with a soso reaction.
This trade COULD work out, not saying that it won’t, I just don’t feel like its an A+ setup. Remember, we’ve been ranging in this EUR/USD pair for quite some time, we may not see a break of that resistance just yet; or we could, there’s just not a definite enough sign to trade it just yet.