The market dropped to 110.00 support level. This is a possible reversal zone where the market can start an upward movement to 111.00 – 112.00 levels. The price diverges with MACD and RSI and it gives us a trend reversal signal. RSI confirms price reversal from the support level. MACD histogram confirms a possible upward movement. In spite of the downtrend, we have a buy opportunity.
Entry level for long trades should be above Simple Moving Average with period 20. It’s 110.50 level. Stop orders must be placed at 109.80 level. Profit target is at SMA100 and 111.50 resistance level. If the market drops below 110.00 support level, we’ll have to delete pending orders and wait for new trading opportunity. Recommended risk size for this trade should be up to 3% from your deposit.
Profit Targets: 111.48