Entry Point (Bearish): If the EUR/USD has recently experienced a strong downtrend, you could consider entering a short position at a resistance level or retracement level after a pullback. For example, a rally to the 38.2% Fibonacci retracement level might provide a selling opportunity if the overall trend remains bearish.
Take Profit at 38.2% Retracement: This level often serves as the first point for a retracement or bounce in the market. It can be a good first take-profit level for a bearish trade, especially if the price starts reversing after hitting this zone.
Take Profit at 61.8% Retracement: The 61.8% level is often seen as a stronger level for potential reversals in a trend. If the EUR/USD continues its downward movement, you might look to exit your trade here for a bigger move down. This is a deeper retracement level and could signal more significant continuation of the bearish trend.
Stop Loss: Placing a stop-loss above the 61.8% retracement level would make sense, as it would protect your position in case the market reverses and goes against your bearish outlook.
Take Profit at 38.2% Retracement: This level often serves as the first point for a retracement or bounce in the market. It can be a good first take-profit level for a bearish trade, especially if the price starts reversing after hitting this zone.
Take Profit at 61.8% Retracement: The 61.8% level is often seen as a stronger level for potential reversals in a trend. If the EUR/USD continues its downward movement, you might look to exit your trade here for a bigger move down. This is a deeper retracement level and could signal more significant continuation of the bearish trend.
Stop Loss: Placing a stop-loss above the 61.8% retracement level would make sense, as it would protect your position in case the market reverses and goes against your bearish outlook.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.