In connection for yesterday’s trade results, unfortunately again, our buy stop loss has triggered after the take profit almost got hit with only less than 5% left! A total of 2 stop losses for my EURUSD plans already this week.

What can we learn from these? I will point out 3 things:

1. I was right yesterday for a potential EURUSD 4H lower high.

2. Nice stop loss placement protecting further losses. EURUSD’s price action yesterday had a strong move down targeting the low this week.

3. We can adjust for an early profit taking once our position is above 50-75% from entry. For the remaining position, we can ride towards the target or let the plan plays out till the end. In this way we can have break-even results.

You can check the details through this link:

https://www.finlogix.com/analysis/20240125/eurusd-intraday-analysis-and-trading-plan-for-january-25-2024

Before we move on to our trading plan for the day, let me update first the higher timeframe candlesticks patterns:

Yearly Candle: Medium Red Body With Short Lower Tail Wick

Monthly Candle: Medium Red Body With Short Lower Tail Wick

The yearly and monthly candles have continued to form Red Body With Short Lower Tail Wick (with almost invisible head wicks which can be ignored) and have increased in size (grown to Medium)! These are bearish signals telling us that there are bigger sell orders executed in the higher timeframes. Weekly candle has mutated to a Red Long Upper Shadow from Red Doji while yesterday’s candle close turned from Green Long Upper Shadow to a Red Body with almost equal head and tail wicks. Both weekly and daily candles confirm the yearly and monthly price actions. Remember that the higher timeframes have stronger market influence.

Back to the 4H chart, EURUSD price has completely went outside the 4H FVGs indicated in the chart above.

Although, yesterday’s drop has found support on the weekly low forming double bottom (almost similar), this can be the liquidity target if price tries to go back inside the combined FVG territories.

For intraday’s trade plan, I will set a short position in the lower region of the combined FVGs. If we have a strong rejection here, we might have a new lower low to close the week once volatility kicks in.

I suppose the rallies for today will be sold off. Will set the stop loss beyond the combined FVGs territory and taking profit below the lows this week as possible long stop liquidity levels.

For a 2.50 risk:reward score, I will give this trade plan enough room towards next week. Shorting EURUSD has a positive swap/rollover rate anyway if we hold this trade for a longer time.

Good luck and have a wonderful weekend. Happy trading!

EURUSD Intraday Analysis and Trading Plan For January 26, 2024

Jan 26 2024

2