Putting short-term and long-term charts in perspective

 

 

Did you ever encounter different views on a different time-frames? Showing you a different picture. What to choose for trading? What strategy? That is where your sense of trend direction kicks in. What do we have looking at the EURUSD charts now?

Looking at the monthly chart above we can see that the pair is swinging in a downtrend channel and the last swing up into the 1.25500 level has led to a pullback into the 1.15000 level of the horizontal upside support, previously broken upside resistance. This horizontal support and the 34 and 55 WMA makes this level a key for the possible downside extension.

For some traders which are not using the top-down trading analysis, the problem is arising when they look at the weekly chart and they are intrigued by the latest bounce off this 1.13400 horizontal level resistance which is also near the Fibonacci retracement 50% of the 2017-2018 swing up. Some see this as a bottom for an uptrend continuation. The pair is still above the 100and 200 SMA’s on a Weekly timeframe. This bounce could be used for a swing trading with a good risk to reward.  Target should be in the 1.18000-1.19000 zone and the risk to reward for this kind of longs is excellent.

 

A Daily chart is revealing the 1.159000 level uptrend line support and traders should be looking for the long trades here. From the monthly chart, you can recall the importance of the 1.15200 level and this is where your stops should be somewhere below the 1.15200 level. This will be then a long trade with the 60-90 pips of the risk comparing to 200-300 pips reward which is excellent for trading.

 

The main conclusion of this technical analysis insight is that in the medium-term EURUSD will have a higher probability to swing higher and the invalidation of this swing higher will come only on a daily close below the 1.15200 level.

A talented trader needs funding? Funded trader program

FUNDED TRADER PROGRAM

Through time we have developed a very respectable trading strategy which defines Entry, Stop Loss and Take Profit levels with high accuracy and allows you to make position risk free. We are publishing daily and weekly analysis and 5-10 trade alerts per week directly on your mobile device via Private twitter feed and Private Telegram group!

TRY US FREE FOR 30 DAYS