Wednesday, July 26, 2017
What I did right...... What I did wrong......What I can do to improve.... What did I learn today?
What I learned today was that it would have been a better alternative to have interest in price going higher even though I've made up my mind on the direction before the meeting. So I just closed two thirds of the position and kept my stop the same place. It saved me a lot of anguish but I wish the Bulls well on their big win today.
This is a three-hour chart of the EUR/USD that shows historically the (Red Dotted Lines) 1.18444 level which was very important on August 24, 2015 that first area of resistance which is very close to the Globex highs. Just based on momentum it look like prices ready to break through and head towards 1.18. There is plenty of momentum from the FOMC meeting. The speed at which the pair has gone up so fast that it is traveling at a 100pip rate in the next logical level would be 1.18 and then 1.19. So I used weekly candles to come up with the potential resistance in the 1.19, and 1.18442 box above.
Immediately below there is the blue rectangle which is the base of the jumping point and if I consider a short position it would to cover near there and let price settle: consolidation after retracing.
The supportive areas from yesterday's post are still valid but they will need refining if the dollar gets stronger, because these currencies tend to move faster than what we anticipate.
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