Trading Idea Traders
Yesterday’s trade has experienced some volatility today. The trading idea I was looking for yesterday is still looking pretty bullish. I have added a second small position today based on my intraday system for minimising risk and increasing the profit horizon. Today’s daily candle is showing a bearish rejection around the 10,850 level. The result is a pin bar like candle that is standing just below the resistance area. Price is basically squeezed between a major resistance area and a bearish rejection of the support levels below the current market price. If we look purely into price action, there is no reason to cover our long positions.
As for today’s trading idea, I am looking at the EUR/USD as a potential one. There are a few bullish rejections on the daily time frame. The past few sessions have shown us bullish hesitance, as well and the short position that we entered in the EUR/USD a few trading sessions ago is still intact. Price is rejecting this resistance level and looking at the price action itself, there is a great chance that the down trend is going to be continued very soon. The daily candle resembles a pin bar and together with yesterday’s candle, they both engulf the bullish candle from the previous session. Having said that, I am considering reducing my exposure in the last EUR/JPY long trading idea and looking for an entry at EUR/USD.
Today’s parameters for a short entry are:
Short trade at: 1.1350 with a tight stop just above the level of 1.1450. Our primary target is the level of 1.1100, which is the closest support level. From then on it comes down to how price action reacts to these levels.