EUR/USD Trading Scenario Wednesday Buy vs Sell
12-10-2016 Trading scenarios Using 4H chart
1-price break the current support and continue to the next one (downtrend continues)
Why?
- Price break a strong support after a long period of holding
- Price break the triangle pattern which is expected to movie 2500 pip down it only moved only 800
- Price reaching the support with high momentum ,candle open at the close of the previous
- Strong News are coming tomorrow which can give the market the power to break if positive for USD
Confirmations
- Stochastic lines cross , stochastic cross overbought zone heading to oversold ,stochastic stay on the oversold zone an trending down
- Technical system give strong sell
- Large Candle close below the support and another candle open at it close
- Price retest the zone and failed to enter
- No reversal patterns appears on the zone
- Lower time frame confirmations
o Technical system signal strong sell
o No reversal patterns
2-the support hold and price goes up
Confirmations
- Reversal patterns formed and confrimed
- Market print large bullish candle and another candle opens at its close
- Stochastic lines cross and cross oversold zone
- Techncial system is not a strong sell
- Negative news for the USD
- Reversal pattern formed on the lower time frames , and technical system strong buy