DKK - was it a FBO?
Morning Dynamic Traders
I hope your new trading week has kicked off to a good start. The markets are a little up and down at the moment, so discipline is absolutely key. Don't start to second guess what might happen, or could happen. Just let the markets do its thing, wait and watch and then act.
Last week I mentioned DKK as it had broken a consolidation period and was suggesting strength in price. Infact, it looks like price has done a FBO. Price has found resistance at 5.60 and handed out a bearish engulfing candle. That coupled with MACD divergence and we may see price either reverse or consolidate again. Having said that, nothing's really changed for the swing trader. The trend is still up, confirmed by the ST indicator and price is currently still above the significant 5.50 level. If it finds support here this may help push price back up. For a long opportunity I'll be looking out for a bob/mobo entry of the new high.
This potential trade was a great example of the benefit of using ESLT. Applying ESLT on the BOB as suggested, should have protected you from being triggered at all and taking a loss.
Remember, NFP is due out this Friday, so we may see the markets consolidate in the lead up to the news.