Thursday, March 08, 2018

The EUR/USD Drop Gives An Opportunity To Look For Better Entries For Long Positions

Despite the pin bar on the W1 time frame it seems that the EUR/USD pair is still not ready to begin the final impulse rally.

One spinning top bar on the D1 time frame was a signal that it was possible for the downward movement to be renewed and it happened today.

That drop is normal however – usually the traders that trade based on a price action strategy advise to wait for the next bar to reach two thirds of the pin bar’s long shadow before opening a position in the direction pointed by said pin bar, in this case they will be buy positions.

If we follow that strategy we could expect a drop to around 1.2250 – 1.2200. Around these levels it will be good to wait for a signal to open new long positions in expectation that the pair will test the local high at 1.25556 which will open its way to 1.2600.