EUR/USD: Bears Extend Bearish Flag Pattern
PipHut | Oct 23, 2014 02:16AM ET
EURUSD Daily Analysis: EUR/USD price action took option A: the traditional, bearish break below that flag pattern that looks to extend the bearish long-term trend. Of course, for a true flag pole pattern the price must now break the flag pole low (1.25) but we believe the low 2600s is a good target for today and 2500 may be a good target for the week.
4h Chart
Our Preferred Trades*: All that being said, and us being bearish, we don’t see a great bearish entry point quite yet that would offer us a solid reward/risk ratio. We would like to get short on a rally, perhaps to the underside of its former bearish channel (around 1.2730 currently), but we’d also like our SL to be above 1.2780, leaving us with a large stop-loss that can’t be made up on the reward. We will, therefore, stay flat for now and wait for a rally above 1.2730 with bearish candlestick confirmation. If that setup occurs alerts will be sent out.
Long-term Trend Analysis Chart
Yesterday’s EUR/USD SwingPRO Signal Result: No trades taken yesterday.
Today’s SwingPRO Signal: Short on support breaks.
*CandlePRO: CandlePRO can be used in conjunction with our daily analysis and “our preferred trades.” For example, if we prefer “going short” or “selling a rally” then we would look for bearish candlestick signals after a rally or near resistance levels. Alternative if we prefer “going long” or “buying a dip” then we would look for bullish candlestick signals on price drops or near support levels.
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