Sophia Todorova is the host of the live trading room for the London session. She has a background in teaching and psychology, and as such relishes the idea of assisting new traders on their journey to Forex trading success. Technical Analysis is her passion. The charts speak, and she listens. To Trade Live with Sophia Join Winners Edge Trading Premium Services.
Eurnzd is nearing the resistance zone of the 4hr range in which it has traded for weeks. The weekly chart also provides resistance above the 4hr range at the 1.8270 area.
This provides a nice shorting opportunity. The red horizontal lines on the chart below mark the parameters of the range. I am looking to enter a short trade at 1.8180-1.8200.
As you can see from the chart, the top of the range is very strong resistance zone. However, since breakouts can occur at any time, we could look for added confirmation on the 15-minute, or hourly chart when price reaches that level. I would like to see rejection of the resistance, in the form of tweezer tops, or bearish engulfing candles, for instance.
Targets for profit are: 1.8080, and then the support of the range at 1.7950. The scaling-out can be flexible, but it is important to do it. Once the first target has been reached, I will move my stop loss to breakeven.
If you are interested in trading this with me, please follow me on twitter.
When trading always use a stop loss and calculate the proper risk management for your account. This analysis aims at providing assistance to the forex trading community here at Winners Edge Trading, thereby helping them to make informed trading decisions
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The GeekKnows- Daily commentary on eurusd
One other free trading tool I recommend is Currensee . It can be a useful tool to be able to see how other professional traders are doing.
