EURUSD: Buy targets reached. Sell opportunity now, top formation

We have been taking our trades for a very long term now based on the 1M Channel Down which started back in June-August 2018 after the phase one sell off of the 1.2550 peak.

This Channel Down helped us take our last sell in early January and target 1.08440 as seen below:

https://www.tradingview.com/chart/EURUSD/XjozDYOX-EURUSD-Testing-the-1M-Channel-Down-Lower-High-Sell-opportunity/

And was the same perspective on the February 20th Lower Low that helped us take the latest buy trade as seen on the two ideas below:

https://www.tradingview.com/chart/EURUSD/q7bWG7Os-EURUSD-Short-term-outlook-RSI-on-bullish-divergece/

https://www.tradingview.com/chart/EURUSD/tr2hZdbJ-EURUSD-Higher-High-above-the-MA50-Bullish-reversal-confirmed/


The above is a short introduction to highlight the importance of this Channel Up on the 1M time frame and the accuracy of trading long term. At the moment the current 1D bullish leg (RSI = 57.399, MACD = -0.03, ADX = 48.842, Highs/Lows = 0.0097) appears to have completed its main phase as it reached +2.75% on a mirror move as the last Lower Low of the Channel in October 1st 2019 (1.0880). Notice also the 1D RSI. Every time it hits that Resistance Zone, a price top is made and is a strong sell indicator.

Moreover the 1D MA50 (blue line) was just crossed with the MA200 waiting at 1.1100. Even though the last two Lower Highs (June 25th and December 31st 2019) were made just above the 1D MA200, we are expecting a technical short term pull back of this 6-day parabolic rise to its 0.5 - 0.618 Fibonacci retracement zone (1.09250 - 1.08920). Our long term trading plan is to scale the next bearish leg with 2 sell positions: one now and one above the 1D MA200 and into the Lower High zone of the 1M Channel Down. Our Target Zone is 1.07300 - 1.06800 (that is the April 20th 2017 low).




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