EURUSD touched supply zone – bearish movement?

EURUSD touched supply zone – bearish movement?

22 May 2020 Fri (HK9:00am)

Queenie Wu                                  

Trading zone: Consider Support and resistance: 1.10089 – 1.08937 

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:

We are close to the top of TMA channel, at strong resistance level 2. 2 bearish candlesticks just formed. One long upper shadow (reached 1.1007) formed on previous trading day (21 May).  Stochastic oscillator reached above 80.  Bearish reversal is likely to happen soon.

H4 Chart:  Reached very strong resistance (1.1).  Supply zone is shown in red in the chart.

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

Reversal indicator just shown alert (white arrow in pink box)

Schaff Trend Cycle indicator has already touched the highest level and is now going downward.  A bearish reversal is likely to happen.

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

Expected direction: DOWN

Entry point: now SELL at 1.09633;

Exit point: H4: We can use Fibonacci retracement level (38.2% and 68.1%) to exit at TP1: 1.09013  TP2: 1.08356 (close to TMA channel floor)

SL: At 1.10008 (the top of the previous candle; close to the resistance level 2)

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.  Last night, both S&P and EURUSD went down together.  We have to pay high attention to the direction of US stock market. 

Result:  Correct prediction.  Bearish movement on 22 May! 

交易區：考慮支持和阻力: 1.10089 – 1.08937

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：

我們已經接近TMA通道的頂部，處於強阻力位2。2個看跌蠟燭剛剛形成。在前一個交易日（5月21日）形成了一個長長的上影線（1.1007）。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（1.1）。Supply zone在圖表中以紅色顯示。

TMA通道頂！穿過通道上限再次進入TMA通道和ENV通道。

Reversal indicator剛剛顯示（白色箭頭）

Schaff Indicator已經觸及最高水平，目前正在下降。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1.09633；

TP： 1.09013 TP2：1.08356（接近TMA通道底）

SL：1.10008（上一個蠟燭的頂部；接近阻力水平2）

EURUSD D1: close to the top of TMA channel





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