If we were to measure the EURUSD long-term downtrend move from May 2011 to Jul 2012, and clone this same move to the downtrend that started on May 2014 just below 1.40, you will find that this move could have potentially ended when it touched just below 1.11 just hours ago. Once touched, the support level held and EURUSD rebounded to the current level of about 1.1180.
Would thus strongly recommend those who have been shorting EURUSD to take profit on their shorts right now.
For those who are squared, can look at getting into long positions as it breaks 1.1208, adding on positions using stop orders at intervals of 25 pips each. A good short-term target is when the price meets the short term downwards trendline, currently slightly above 1.15.
For those going for mid to long term, the 38.2% (around 1.22) and 50% (around 1.25) retracement levels will prove to be good points to take profit. Just be mindful that your long-term positions can withstand higher volatility which we are already seeing in the markets these days.
Wish I had seen this chart Monday morning, it would have saved me several losses.
terencetrading
⋅
Short-term traders please place your Sell Limit orders @ 1.1480. Mid-term traders please watch how the prices move as it approaches/touches the short-term downwards trend line as seen on the hourly chart. It needs to break this to continue the upwards move, else you may need to start taking profits.
terencetrading
⋅
Remaining two orders triggered (Bought @ 1.1358, 1.1383).
5th order just triggered (Bought @ 1.1308). Starting to approach the first key resistance around 1.15.
terencetrading
⋅
Update: 4 out of 8 orders has been triggered (Bought 1.1208, 1.1233, 1.1258, 1.1283). 1.12 now acts as a psychological support level.
Looking at the hourly chart, we have now seen a higher high, and currently building a potential low. If current prices holds and prices starts going up, then we will have completed the higher-high-higher-low formation, and thus starting the short-term bullish trend line.