EUR/USD Short trade
EUR/USD is falling and i decided to be a part of it too and as such i shorted the pair at 1.2783.
as you can check on the screen shots, there is a very strong resistance at 1.2865 price level. if call this level a confluence zone. by confluence zone i mean there are multiple resistance level stacked on top of each other and give that level a huge resisting power. to count some of them i can say this level is the monthly S2 level pivot, it is also daily S2 level pivot, and it is also the current Kijun Sen level. and that’s what i call a confluence zone. also as it is shown on the 4 hour chart price had retraced back to its Tenkan Sen, filed to penetrate that level and head back down. all these signs gave me a strong reason to jump in the bandwagon. The only risk factor was due to ECB “Europe Central Bank” interest rate announcement today, but i thought there is hardly a chance that ECB will raise its rate from 1% with all this chaos going on in EURO zone.
Daily Chart suggests caution however. We are slightly above the weekly S3 level and price might stop there for a while.
Entered at 1.2783 and stop loss slightly above the resistance confluence zone.
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- Hourly Chart
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- 4 Hour Chart
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- Daily Chart
