Short Opportunity for EUR/USD with Alternative Bullish Scenario
Updated
The EUR/USD trading pair is currently under analysis, presenting a potential short trade opportunity if the price breaks below the previous day's low at 1.07057. In this scenario, a downtrend could be signaled, with the next target at the 4-hour support level of 1.06668. For a safer entry, traders are advised to wait for a retest of the 1.07057 level and enter the trade after confirmation of resistance. Place a stop-loss order above the retested resistance level to limit potential losses, and set the take-profit order just above the 4-hour support level. Ensure a favorable risk-reward ratio and align position sizing with your risk tolerance. A comprehensive trading plan, including risk management strategies, is essential. This trade offers a potential 40-pip profit if executed correctly.
Alternatively, if the price does not break below the previous day's low and shows a bullish bias, it may target the 4-hour resistance level at 1.07317, offering a potential 26-pip gain. Traders should monitor price action carefully and consider bullish entry signals if the market exhibits strength in this scenario.
Please remember that trading involves risks, and this idea is not financial advice. Conduct your own research, consider your risk tolerance, and consult with a professional financial advisor if necessary.
Alternatively, if the price does not break below the previous day's low and shows a bullish bias, it may target the 4-hour resistance level at 1.07317, offering a potential 26-pip gain. Traders should monitor price action carefully and consider bullish entry signals if the market exhibits strength in this scenario.
Please remember that trading involves risks, and this idea is not financial advice. Conduct your own research, consider your risk tolerance, and consult with a professional financial advisor if necessary.
Trade closed: target reached
Update: Short Opportunity for EUR/USD - Target HitI'm pleased to report that the short trade opportunity for EUR/USD that we discussed earlier has successfully reached its target. The price broke below the previous day's low at 1.07057, confirming the downtrend we anticipated. Waiting for the retest of the 1.07057 level allowed for a safer entry, and entering after resistance confirmation during the retest proved to be a wise decision.
The trade went according to plan, with a stop-loss order placed above the retested resistance level to limit potential losses, and the take-profit order positioned just above the 4-hour support level. This approach ensured a favorable risk-reward ratio for the trade, and it ultimately resulted in a 40-pip profit when executed correctly.
Stay disciplined, keep analyzing the markets, and continue to refine your trading strategies for continued success.
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