Is it time to go LONG EURUSD?
EURUSD looks pretty much like free fall over last year – 9 months of consecutive losses.
From almost 1.4 (May 2014) we are sitting at 1.07 that’s a loss of 23.5% in EUR value.
Is it time to go LONG now?
Based on 1M time frame.
RSI is strongly oversold (7.64) at its lowest level since 1993. Fibonacci extension of 123.6% (I know not commonly and widely used – but worth noticing) confluences with support area and as you can see we have previously tested twice 23.6% Fibonacci level previously (2nd time almost) therefore using extension of 123.6% as a possible buy area seems to me very logical.
I would also keep an eye on lower line of channel – if price above that line that will definitely help case of going long, however if we get close below that line and most importantly below 1.0414 then I would wait to see what reaction we get at psychological level around 1.0000
Green box is my suggested area for entering long positions – preferably around 1.060. Lots of people already entering or already in long positions as RSI on daily is as well heavily oversold, therefore another 100+ pips move down to hit all of those stop loss orders wouldn't be a surprise
SL below 1.04, TP’s: 1.190 / 1.228 / 1.267
Good trading and good luck!
Arek JP
EURUSD looks pretty much like free fall over last year – 9 months of consecutive losses.
From almost 1.4 (May 2014) we are sitting at 1.07 that’s a loss of 23.5% in EUR value.
Is it time to go LONG now?
Based on 1M time frame.
RSI is strongly oversold (7.64) at its lowest level since 1993. Fibonacci extension of 123.6% (I know not commonly and widely used – but worth noticing) confluences with support area and as you can see we have previously tested twice 23.6% Fibonacci level previously (2nd time almost) therefore using extension of 123.6% as a possible buy area seems to me very logical.
I would also keep an eye on lower line of channel – if price above that line that will definitely help case of going long, however if we get close below that line and most importantly below 1.0414 then I would wait to see what reaction we get at psychological level around 1.0000
Green box is my suggested area for entering long positions – preferably around 1.060. Lots of people already entering or already in long positions as RSI on daily is as well heavily oversold, therefore another 100+ pips move down to hit all of those stop loss orders wouldn't be a surprise
SL below 1.04, TP’s: 1.190 / 1.228 / 1.267
Good trading and good luck!
Arek JP
