Technical Analysis EURUSD : 2014-07-08

Good afternoon, dear traders. Today we consider the EUR/USD trading instrument on the D1 chart. RSI-Bars oscillator signal demonstrated three consecutive bars below the trend line: it can be considered the first sign of the bullish trend weakening. It should also be noted that the price approached quite closely to the ParabolicSAR last value: its downward intersection is possible while demolishing the fractal resistance at 1.35727. The Pending sell order is recommended to be placed below 1.34988, which is considered to be the last weekly uptrend border-line. Risks are mitigated by the last resistance at 1.36972.


There is a possibility of the second scenario to happen: the last correction of the monthly trend channel. In this case the price breaks through the D1 trend line upwards. At the same time there is a daily resistance breach of the RSI-Bars signal. A purchase is better to be performed above the fractal mark at 1.36972 with the risk limitation below 1.35727.
In both cases the Dynamic Trailing Stop is to be moved according to the trend direction every day (trend following strategy). Therefore, we are changing the probable profit/loss ratio in our favor.

Sell stopbelow 1.34998
Stop lossabove 1.36972

Buy stopabove 1.36972
Stop lossbelow 1.35727


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