Saturday 10 May 2014

forex signal - EUR/USD giving a strong bullish and bearish signals

On my previous forex analysis on EUR/USD currency pair, i predicted that a strong bearish trend was about to happen but now as i was analysing the monthly and weekly chart, i saw that a trendline
breakout has happened on both time frames but the ironical thing is that both of them are pointing to different directions. The trendline line breakout on the monthly chart is pointing upward while the trendline breakout in the weekly chart is pointing downwards.
FOREX EUR/USD MONTHLY CHART
As you can see on the monthly chart above, a trendline has been broken which signifies that the upward trend that started on 01/07/2012 will still continue but the weekly chart says otherwise.
FOREX EUR/USD WEEKLY CHART
On the EUR USD weekly chart above, the trendline has been broken by the forex bears which goes against what we have seen on the monthly chart which clearly shows that the bull are in control.
Now, the signs both weekly and monthly chart has shown are both strong meaning the trend could go either way. Either up as the monthly chart has shown or down as the weekly chart has shown.
How to place trades
Now, we know the trend could go either way and the best way to trade this type of forex pattern is to hedge (placing a buy and sell trade at the same time).

Buy entry: 1.37571
Take profit: 1.48392
Stop Loss: 1.34728

Sell entry: 1.37571
Stop loss: 1.39947
Take profit:1.28095

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