I’m still expecting a EURUSD to push higher either this week or next. I think 1.11230 needs to be tested on the monthly time frame. But it’s important to not form a bias around this.
I’ve marked quite a few levels where long scalps are possible as we retrace the up-leg. The red level at 1.10729 is our first invalidation of higher time frame trend.
This trade did not go to plan, but managed to salvage a small profit. I had originally wanted to scalp long with 2 micro futures contracts (M6E) at 1.1129. First target was 1.1132, then move stop to break-even and let it run.
My entry was good. I targeted the 15-min level and got a nice reaction. I took profits as planned at 1.1132 and moved my stop loss to break even. This is when I realised there was some news coming out in just 3 minutes which can cause volatility. I also noticed there was no bullish follow through at this level so decided to take second profits at 1.1133 and close the trade.
I trade on M6E but chart the 6E as it’s smoother with more volume. I also look at the underlying EURUSD chart above to help identify key levels.
The origin of 1.11290 can be found by looking left at the leg we are retracing down. It is a swing-high of our low.
I have gained some confidence in my quick decision making skills. This clearly didn’t want to push higher and given the potential incoming volatility it was a good decision to close the trade early.
The entry and exit couldn’t have been more precise which also gives me confidence in my level identification ability.
Perhaps wait for a more significant level before entering as I really had no margin for error here. The 1-hour EURUSD chart looked very bearish and needs some significant accumulation before reversing.