I went short on this on the other day below the 2.618 and with a target down to 0.618 which still is a target. However. The strong up-trend provides a challenge in terms of near term risks when going for a counter-trend trade and my initial SL was too tight (I was too cheap) . I had to re-do my analysis, but luckily DanV sent over a link to his latest analysis and based upon his analysis I added a few options to my trade. You find DanVs chart here
It is very important to read his comments to his trade carefully. I have been trading this pair very successfully just based upon his analysis to be my main compass.
I want to see a clear break of current price level and a strong close under it. My stop is now placed above the high which migth seem a bit to much but needed until and if we get a strong close under current level. I will keep a close watch on GBPUSd and NZDUSD respectively to see how strong or weak they play against the dollar this week.
If this trade goes my way I will take profit and re-enter the trade on every push to the upside as long as I see lower highs and lower lows.
I want to see a clear break of current price level and a strong close under it. My stop is now placed above the high which migth seem a bit to much but needed until and if we get a strong close under current level. I will keep a close watch on GBPUSd and NZDUSD respectively to see how strong or weak they play against the dollar this week.
If this trade goes my way I will take profit and re-enter the trade on every push to the upside as long as I see lower highs and lower lows.
