EURUSD touched supply zone AGAIN – bearish movement?

EURUSD touched supply zone AGAIN – bearish movement?

27 May 2020 Wed (HK9:00am)

Queenie Wu                                  

The same bearish trend appeared AGAIN.

Trading zone: Consider Support and resistance: 1.10213 – 1.08519 

Strategy: Wave trading between the key support and resistance levels.  Follow the trend direction in the higher timeframe (D1) and use the lower timeframe (H4 or H1) to enter.

Notice: Support and resistance levels are shown by the pivot indicators & the

Fibonacci retracement level

D1 Chart:

The situation is very similar to the case on 22 May.

We are close to the top of TMA channel, at strong resistance level 1. Bearish candlestick just formed. One long upper shadow (reached 1.09983) formed on previous trading day (26 May).  Stochastic oscillator reached above 80.  Bearish reversal is likely to happen soon.

H4 Chart:  Reached resistance level (1.09966).  Supply zone is shown in red in the chart.

We are close to the top of TMA channel! Passed through the ENV ceiling and re-enter into the ENV again.

Schaff Trend Cycle indicator has already touched the highest level and is now at a very high level.  A bearish reversal is likely to happen soon.

Trend direction: use Identify trend indicator: DOWN in H1 chart

Expected direction: DOWN

Entry point: SELL at 1.09697 (HK time 9:00am);

Exit point: H4: We can use Fibonacci retracement level (68.1% and 50%) to exit at TP1: 1.09023  TP2: 1.08690 (close to TMA channel floor)

SL: At 1.09966 (the top of the previous candle; close to the resistance level 1)

Be careful: Notice there may be a change in direction from Asian to London to US session.  If this happens, we have to TP immediately.  Another issue to notice, the movement of EURUSD is correlated to the movement of US stock market.  We have to pay high attention to the direction of US stock market.

Result: Correct prediction.  Bearish movement on 27 May afternoon.  Watch out the London and US session, there may be upside retracement! 

At 17:00, when London session started, the trend changed.  Very strong upside retracement happened.  US stock market is bullish today.  This may affect the movement of EURUSD tonight….

同一個看趺趨勢再次出現.

交易區：考慮支持和阻力：1.10213 – 1.08519

策略：在關鍵支持和阻力之間波段交易。在較高的timeframe（D1）中看趨勢方向，並使用較低的timeframe（H4或H1）入市。

D1圖表：

情況有點似五月二十二日.

我們已經接近TMA通道的頂部，處於強阻力位。看跌蠟燭剛剛形成。在前一個交易日（5月26日）形成了一個長長的上影線（1.09983）。隨機震盪指標Stochastic Oscillator達80以上。Bearish reversal可能很快發生。

H4圖表：達到非常強的阻力（1.09983）。Supply zone在圖表中以紅色顯示。

ENV通道頂！穿過通道上限再次進入ENV通道。

Schaff Indicator已經觸及最高水平。Bearish reversal很可能發生。

趨勢方向：使用識別趨勢指標：H1圖表中為DOWN

預期方向：DOWN

入市點：賣出1.09697 (HK time 9:00am)；

TP1: 1.09023  TP2: 1.08690（接近TMA通道底線）

SL：1.09966（上一個蠟燭的頂部；接近阻力區）

EURUSD H4: at supply zone strong resistance level, reversal just started.

EURUSD D1: close to the top of TMA channel

Result: correct prediction.  Bearish movement on 27 May 2020