Hello, I am Forex Trader Andrea Russo, and today I want to share with you a strategy I have adopted for a position on EUR/USD. I will analyze the reasoning behind my choice and the setup I am using to maximize opportunities, minimizing risk.
The trade setup
I decided to enter EUR/USD with an entry level at 1.08483, setting a stop loss (SL) at 1.08095 and a take profit (TP) at 1.0944. This trade is based on a series of technical and fundamental factors that suggest a probable continuation of the upward movement.
Technical analysis
My decision is supported by some key technical signals:
Uptrend: The EUR/USD cross has shown good recent strength, supported by a series of higher lows.
Support at 1.08095: The SL level has been set below the main support to protect the trade from a potential reversal.
Resistance at 1.0944: The TP was calculated based on a major resistance level that could serve as a target for a significant upside move.
Fundamental Analysis
From a fundamental perspective, there are several elements that are positively influencing EUR/USD:
Divergent monetary policies: The prospect of more hawkish ECB policies versus the Fed is supporting the euro.
Macroeconomic factors: Recent data on economic growth expectations in the eurozone provide a favorable backdrop for the cross to rise.
Risk/reward ratio
With a stop loss set at 1.08095 and a take profit at 1.0944, the risk/reward ratio of this trade is optimal, standing at around 1:2. This setup allows you to contain your risk and aim for a significant gain.
Trade Management
Once the position is opened, I will monitor the market movements and keep an eye on key indicators to assess any adjustments. If prices move quickly towards the TP, I may consider partially closing the position to protect profits.
Conclusion
This trade represents an interesting opportunity in a dynamic and variable market. Risk management remains the cornerstone of any winning strategy, and with a well-calculated setup like this, we aim to make the most of market conditions.
Trade closed: stop reached
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.
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.