Undoubtedly, the Euro has been on an uptrend and at it is, we expect the Euro to continue edging higher going forward. Technically, the stochastics are oscillating around the oversold territory in the secondary chart and we are just waiting for a simple break above the minor resistance trend line as highlighted in the daily chart.
Notice that despite the strong uptrend from Q2 2017, prices are now slowing down but after December 18 Euro under-valuation, we saw prices bouncing back towards equilibrium and even at current prices, the support trend line is expected to shore prices. Of course we don’t know the future but any strong break and close below this minor trend line and especially below 1.67 will invalidate this bullish projection.
Zooming in the 4HR chart, notice that stochastic buy signal that has printed in the oversold territory? That is significant and important for buyers in my opinion.
We can trade two ways now. Either we wait for this buy signal to be confirmed with a bullish candlestick or we wait for a close above the minor resistance trend line at around 1.7-a round number- and enter long. It all depends on what you are willing to risk. Of course the earlier you get in the lower the stop loss because we shall place it below today’s lows at 1.69.
So, we trade as follows:
Buy stop: 1.6950
Stop Loss: 1.1.6850
Take Profit: 1.7500
Let me know what you think guys!!