The Euro victory march after the French presidential election looks to be braking at the moment. A look to the never lying chart points to a deceleration and realization that much needs to be done in France if their ambitions of becoming an economic powerhouse. Political realignment and structural reforms should be a priority and that is all Macron needs to do. At the moment though, let’s follow through and reap some benefits after last week’s overstretched price action.
From the charts, it is obvious that price closed above the upper BB-in the weekly chart and then a sell signal was printed in the same chart. Pasting a Fibonacci tool from last year’s hi-lo shows that this possible reversal is happening at the 38.2-50% levels. These are key levels and historically, prices almost always reverse anytime oscillation happens around these zones. I will therefore zoom in and enter in the 4HR and trade in as follows:
Sell Stop: 1.0885
Stop Loss: 1.0965
Take Profit: 1.08
Have a good trading day