On the 17th of July the EURUSD bottomed out on this 1 hour chart. Since then price has been refusing to go down.

It has constantly been providing us with higher highs and lows.

Therefore purely technicly speaking a trader should prefer the bulls over the bears until this chart provides us with a double top or 123 reversal pattern.

Only then will our fundamental bias be alligned with the technical side of trading.

One advise, even if difficult trade only what you see happening infront of you.

If on this chart after the price retraces to the number 6 and 7 and if they manage to hold or support price then trade this pair long.

2015-07-27_18-02-06eurusd 5 min

Now lets see our trade-plan.

Ideally we want to buy cheap and therefore price needs to retrace to provide is with a better price or entry.

We choose an area of support to go long. This area is significant because it also holds the M3 Pivot.

So IF price comes down, IF support holds and IF we receive a reversal pattern THEN we go long.

If this does not happen then we analyze a different chart and prepare another trading plan.


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