160705tu 0800BST EURUSD London Open Strategic and Tactical Trade Plan
Market is indecisive, 21/55 are braiding, decelerated, little angle and separation, 21 little below the 55
Price 5/8 are reversing to the mean
Volatility medium-high volatility
EURUSD daily is in a range between 1.1500 and 1.1080
On Daily price has been moving in an ascending channel, whose support trendline has been broken by Brexit fall
Now price seems to retest the channel support from below
Market is down, 21 is kissing the 55, decelerated, no separation
Price has been up until but now 5/8 are crossing ready for a return in the trend after the retracement to the 55
Price is back to the 55, if the 55 is respected, a double bottom is expected
Price went at WM3 has has been rejected to far, if WM3 is respected today tuesday, it could go down to WM1, confluent with the double bottom predicted by the MAs
WM3 is also at the same price level of DM3, and it’s a mid point psych level (1.1150)
Price has been also rejected by the 50% Fib ret. of the Brexit fall. 50% predicts 138.2-161.8 ext., which is confluent with MM1
H1 SWING STRATEGY
Based on the trend following swing strategy, bulls have bought at 1.1120, which is the 61.8 Fib ret. of the range of the previous day. Since I am a bear, I can’t enter on this bullish move, and I am just waiting for it to fade, as I believe the bearish trend will resume at resistance.
I expect price to make a lower high at Monhtly pivot or a double top at WM3-DM3 pivot cluster
As you can see bulls and bears are fighting over the DPP at the moment.
Observing the stochastic, I expect bulls to win over bears up until MPP in case of a lower high, or up until WM3-DM3 pivot cluster.
My plan A would be to short at MPP.
My plan B would be to short at WM3-DM3 cluster.
If plan B wouldn’t work, I would be out.
Given that, as you can see from the chart, I am already in at 1.11185, I am not taking new position as plan A nor as plan B. Instead I expect price to come back to my entry price to decide if I will exit at BE or keep the position open in case of an established bearish trend.
What do you think of EURUSD at today’s London open?
Please add your comment to my analysis and your opinion, thank you.