Update to EURUSD WE 31, Entry Triggered from a Bearish Engulfing Bar

If you have read the post here: Market Analysis for EURUSD WE March 31, you may have noticed that I left out a scenario where a breakout could fail. And as we speak, the breakout potential for EURUSD did not materialized, instead, we have a Bearish Engulfing Bar that can be traded since we are at a supply zone.

The trade was triggered when an engulfing candle formed. However, most engulfing candle may need confirmation, but I can still enter a trade with an initial position that is still within my risk of 1-2%. I initially entered a sell stop order for 4000 units (.04 lots) 15 points below the low of the engulfing candle marked with "A". Stop loss for initial position is marked with A1 and target is marked with A2. The distance from entry to stop is 110 pips, while the profit target is 128 pips.

Second position was triggered when a bar closed below the 50% of the green bar marked with "B". Added 3000 units (.03 lots) Stop loss is 90 pips marked with "B1" and profit target is 134 pips marked with "B2".

The timing of the trades would have been better if there were triggered on a Wednesday. Most traders will likely gear up for profit taking on Friday and some, early as Thursday. However, the way the market is moving, it will likely hit target A2.

These positions are going to be adjusted in conjunction with how the market behaves in the next 24 hours. I'll be updating this post til then.

Have a great day and good luck.