The U.S. Dollar broke out and closed below the long established daily chart ascending channel yesterday. This morning we are testing previous support and I like a short around $107.60; personally I am short at $107.53 following a stupid blunder where I bought at $107.60 instead of sold! Argh! I hate that!
My initial profit target is the $104.80 level although I will keep a close eye on Friday’s low of $105.50.
If this is truly a breakdown of the daily chart channel, we may see as low as $103.50 over the coming weeks.
Be patient with this one and best of luck,
Ryan
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Hi Ryan. Good to hear from you again. But this trade setup u made today makes me wonder. Considering the fact that dollar is very strong across board, then what is logic that will make this pair go against the dollar. Just want to know if u have any other thought that will validate this trade. Thanks
This trade is looking good as of the moment…personally i decided to be on the sidelines. I was looking for trade opportunities to go against the dollar across the board this week but decided to let go of the trigger as the recent strength shown by the dollar last week has made me uneasy to fight it….I’m still tryin to grasp this concept of S&R trading as I used to be an indicator freak trader
…. I’m really glad to find your site and see someone trading the way you do…seeing the trades you do makes me feel that I’m not grasping at straws with my ideas…
Hi brad. Thanks for sharing your thought. The long candle on the 4hr chart(almost 150 pips) was d reason for my doubt. I waited to see d next candle which printed a dark cloud cover on 4 hr and a descending channel was already forming on d 1hr. So i went for it @107.50. The pair is really fighting to break d lower tline of this channel now at around 106.00. Am going to hold on onto this too.