The reason why I choose to sell the EURUSD is quite simple. In the 4-hour chart, price forms a Bearish Engulfing Bar. This bearish signal appears in the area that stand as the Daily resistance level.
EURUSD daily chart – zoom out
EURUSD daily chart – zoom in
As you can see in the picture above. Price on EURUSD breaks the level that I have marked as the daily support level. If we zooming out the chart, we can see how strong the level is. After price breaks the level, this level now acts as the new daily resistance level.
Price then pullback and retest the old support/new resistance level again and yesterday I see an opportunity to go short. This opportunity appears on the 4-hour chart as price forms a Bearish Engulfing Bar and rejecting the new resistance level. Then, I’m open sell order below the bearish engulfing bar.
OP: sell at 1.0635, SL: 1.08781, TP 1: 1.0518, TP 2: 1.0350
- Adjust stop loss for the 2nd position to break even (BE), if price reached the first target.
EURUSD 4-hour chart