I'll be scouring the charts for "actionable masterpieces". These will be signficant chart patterns or set-ups that I feel are not only tradeable, but also have a high probability of making big profits with little risk. Whenever I spot an "actionable masterpiece", I will post an annotated chart (my chart art) along with an explanation. My goal is to help you learn how to spot these low ocurring but highly profitable "actionable masterpieces" yourself.
Sell EUR/USD
Traders seems to be increasingly hesitant buying the pair at current levels, especially with Euro-zone economic data likely to worsen. The main reason price remains near all-time highs is because the ECB continues to maintain a tough stance on interest rates in the short term to control inflationary pressure. But just how long will this last if economic data being released gets suckier and suckier?
If the ECB do stick to their guns with maintaining interest rates, then the dollar will continue to remain weak, since the Fed continues to lower interest rates. I'm not so sure how long the ECB can hold out though.
Either way, I think there's little value selling the dollar at these levels and look to get in early to catch a big price reversal.
Technically, price has been trading sideways for almost two weeks now. There is bearish divergence as the oscillator seems to be weakening.
I'm going to sell now at 1.5820. My stop loss (SL) will be 1.5920. Above the most recent hights. My profit target (PT) will be 1.5370. I will post any trade adjustments in my comment section below.
Sell EUR/USD @ 1.5820 | SL: 1.5920 | PT: 1.5370
