I entered two shorts on the DAX. I sold 1 lot Bar1 on the pullback into the bearish gap but closed the short at Bar2 at break even as there was no sign of follow through selling. I re-entered the short at Bar3 on a small bearish pin bar as the index rejected the upside at the session high. I took profit at my initial target near the morning’s low. Nonetheless after some sideways price action the index extended its downside so I have missed the bulk of the price movement. Profitable day but another missed opportunity.
Tag Archives: confluence
The current support on EURUSD seems to be a key level due to the confluence of the followings:
1. Feb-7 swing low
2. 38.2 fibo retracement of the 1.2875-1.3861 upleg
3. 61.8 fibo retracement of the 1.3245-1.3861 upleg
If this level support fails it will open downside to test the 1.3245 level as next objective. We need to see a firm lower low for a bearish trend otherwise the current price action remains indecisive.
The EURUSD is testing a confluence of supports: 38.2% fibonacci retracement, major swing high and prior swing low. A measured move form yesterday’s top would violate this support range, look for downside failue with bullish reversal signal there.
The 0.86063 seems to be a big level for the EURGBP with three factors creating confluence: 50% fibo level of the 0.91495-0.80680 downleg, important swing low on Jan.28, measured move target of the most recent A-B-C corrective zigzag.
For this reason (ie. strong resistance) I may prefer the GBP over EUR when taking long position against the dollar.