Hello trend traders,
As per our previous email on the Euro Dollar, we can now confirm price seems to be stalling at our MoB. Remember when in doubt it is best to stand aside but in this case, we are already involved with long positions in this currency. Although as the trade is free from liability, we actually do not have to be concerned but do need to manage the trade so not give back our profits to the market.
Reasons for management:
- Weekly suggesting a bearish wave 4 is almost complete
- Weekly Stochastic is bearish
- Daily suggesting a bullish wave 5 is complete
- Daily Stochastic is bullish
- Daily divergence long term and short term
Based on the logic above, price may start to decline or even find a burst of strength, fail at the half figure resistance zone and then decline into the weekly wave 5 pattern. Regardless of the above being the right outcome or not, we still walk away with a very good profit. As usual we will wait for price to indicate the continuation or change of trend then we can consider our new entry decision. As price is range bound, we want to refrain from entering any further positions for the moment but will continue to manage the trade locking in more profits each day if possible.
The video from earlier in the week is below.
Good Dynamic Trading.