EURUSD – LONG – 22nd May 2018
The daily chart gives us our bias for the following trading day and we can clearly see the bullish rejection candle which is also forming at a prior S/R level. Given the recent bearish extended run we were looking for quick opportunities to the upside.
On the hourly chart we can see bullish MACD divergence along with a downward sloping trend line. Price had broken out of the trend line and also closed above the 50EMA. With our bias to the long side all the rules in our strategy were ticked and we were able to place our order at the daily pivot. Price retraced to the pivot during the Asian session and entered us into the trade. As the London session opened demand quickly came in and price accelerated higher.
Due to the D1 down trend we placed our target at that level which also coincided with the R1 pivot level, this was also at prior H1 highs. Price hit our target for 1.62R and as we can see in the chart price has shown a reaction to the R1 level.