- Oct 31, 2012
On 1-hour timeframe EURUSDJPY: H1 is in downtrend after retracing higher following a fall to 30-month low. The price is below the 200-period moving average MA(200) which is falling itself.
We believe the bearish momentum will resume after the price breaches below the lower bound of the Donchian channel at 1.0994. A level below this can be used as an entry point for placing a pending order to sell. The stop loss can be placed above 1.1009. After placing the order, the stop loss is to be moved to the next fractal high, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level without reaching the order, we recommend cancelling the order: the market has undergone internal changes which were not taken into account.
GfK consumer confidence index improved in Germany in January. Will the EURUSD start rising?