The following is a discription of where the lines on my chart were taken from.
--Black dotted lines are daily support levels.
--Black solid line is the former daily trendline (down trend) which is now support
--Green solid lines represent the former uptrend channel on the hourly chart
--Yellow line is the .382 fib line and is discribed in the bubble on the chart.
If the EURUSD ranges for a few hours at the start of next week, while testing the daily .382 fib retracement it may present a breakout opportunity. A break of the .382 fib will open up 1.32656 area as the next resistance zone, and a good place to take profits.
Stops should be placed below former channel resistance. This trade offers a possible 2:1 R/R ratio.
A break back in to the channel will invalidate the trade.
--Black dotted lines are daily support levels.
--Black solid line is the former daily trendline (down trend) which is now support
--Green solid lines represent the former uptrend channel on the hourly chart
--Yellow line is the .382 fib line and is discribed in the bubble on the chart.
If the EURUSD ranges for a few hours at the start of next week, while testing the daily .382 fib retracement it may present a breakout opportunity. A break of the .382 fib will open up 1.32656 area as the next resistance zone, and a good place to take profits.
Stops should be placed below former channel resistance. This trade offers a possible 2:1 R/R ratio.
A break back in to the channel will invalidate the trade.