Euro / U.S. Dollar
Short

EUR/USD Trade Report

84
Date: August 15, 2024
Instrument: EUR/USD
Timeframe: 4H
Trade Type: Short Position, followed by a Long Position

1. Market Analysis:

Pattern Observed: A leading diagonal is forming, suggesting a potential initial pullback before a continuation of the upward trend.
Pattern Characteristics: The leading diagonal is often seen at the start of a new trend, indicating a brief correction before the trend resumes.

2. Trade Setup:

Short Position:
Entry: Planning to enter a short position at 1.10440, expecting a correction after the diagonal completes.
Stop Loss: Placing a stop loss above the recent high at 1.10767.
Take Profit: Targeting a key support level or Fibonacci retracement at 1.08813.

3. Risk Management:
Position Size: Adjusting position size to risk no more than 1-2% of trading capital on each trade.
Risk-Reward Ratio: Aiming for a risk-reward ratio of at least 1:4.

4. Outlook:
Neutral to Bullish Bias: While the initial move is a short, the overall outlook remains bullish, with expectations for the trend to resume after the correction.

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