After doing analysis on EURUSD
, I have mapped out some possibilities that may unfold in the next 1-3 months. If we close above 1.27 on a monthly basis then the trend looks to remain bullish
and we will likely see 1.30s. However, I am looking for a decent pullback in February on EURUSD
especially when you consider bullish
sentiment being at multi year highs, I will look to exploit this and take the contrarian approach. I will be shorting EURUSD
around 1.24-1.25 range and holding for a month with a stop loss at 1.26500.
I have mapped out some retracement levels we could see on the downside. After a 50% retrace I will most definitely be looking to go Long on EURUSD
. At that point sentiment would be overbearish and I would look to take the opposite side once again.
Trading is not about being wrong or right, it is about making money. Never be married to one side of the trade, always be willing to flip incase you are wrong.