EURUSD: Trading the retracement
EURUSD is one of the stronger pair recently. However, it is also near to some critical price level. Here’s a look at EURUSD and how Tflow® students can analyse step by step, especially applying what was reinforced in Best Practice Class. And please remember to sign up for the next BP class on 25 March 2014 (Tuesday)
Big Picture Look
Price is currently at resistance on the D1 chart
Looking at the H4 chart, we see a few things.
- There is a 1234 forming near resistance.
- If price can close below the first support zone, subsequent ones may be seen.
- Boxes are still stacking up so this could be just a possible retracement until a Bearish Expansion is seen to fit a H4R criteria.
Few things to note:
1. A sell trade is a counter on a strong resistance
2. A safer approach is for bearish expansion to happen, first we will see in H1 (Day boxes) and subsequently should see in H4 (Week boxes)
3. For the 1234 pointed above to pan out, it is important for a close below 13880. 13850 poses as immediate support. We will also see if the suspect HS H4 pans out