Technical Analysis:
The price has broken below a major support zone amid ECB Press Conference while falling within a major falling trend channel and then followed by 2 minor retracements.
Market Sentiment:
Euro weakens after ECB Press Conference as it leaves the door open for more stimulus after Draghi ruled out any possibility of tapering its current stimulus program. And based on the technical chart, the price went on and broke below a major support zone after ECB Press Conference which further makes it bearish.
Trading Plan:
Short at 1/2 risk after 2 minor retracements and in expectation of a 2nd major retracement.
Stop loss was set 20 pips above a probable 2nd major retracement.
After price fell for another wave, apply Seven Wave, wait for a retracement and add position when possible.
Final target will be all the way to the bottom of the falling trend channel and bottom of the next key support zone.
Modification:
[21/10/16 12:59]Shifted stop loss to 20 pips above previous swing high.
[21/10/16 17:17] Full exit as the price has completed another wave depreciation of equal volume. No more trades will be made tonight even if the price completes another 2 waves of retracement due to market closure.
Results: Gain 1.34%
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