EUR/USD – Daily
Recommendation: GO LONG (WITH CAUTION)
Current Trend: Short-term down, but oversold. Med and long-term up.
Strategy: Go long at current levels.
Trade summary detailed below:
Chart Setup: The euro broke below its 9 Feb low (line 3) briefly and gave a classic bullish reversal candle yesterday (Thurs.). This also occurred from its rising 50-day moving ave (support). It’s likely to rally from here.
- Its short-term Stochastic is oversold, which is also bullish.
Strategy Details: Short-term traders to go long at current levels (but with caution).
Target: Take half profits at/near 1.2400. And the rest at 1.2540 if reached.
- Its main target is still to 1.2640, based on a rounding bottom. But it’s unlikely to be reached just yet.
- To the downside, support is lines 1 and 2 at 1.2090.
Stop-loss: A close below 1.2150 (below yesterday’s low). From 1.2350 raise stop to below 1.2230. And from 1.2390 raise a stop as a breaking of its prior one day low.
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