EURUSD: 2H Analysis & Trade SetupAfter analyzing the EURUSD on the 2-hour timeframe, we observe a shift in market dynamics as sellers begin to gain momentum.
Stay alert for price action in the coming hours as the pair continues to test these critical levels:
Resistance @ 1.1211
Point of Control @ 1.1166
Support @ 1.1121
CURRENT MARKET SENTIMENT
Buyers are in control as long as price action remains above the 1.1180 level, indicating a bullish stance at these levels.
However, recent price action shows the first signs of downtrend momentum on the 2H chart as the pair begins to trade below 1.1165, suggesting that sellers may be preparing to push prices lower.
SELL OPPORTUNITY & TRADE SETUP
If there is a pullback to the upside, we are targeting an opportunity to enter a Sell Limit Order (SLO) at 1.1151, where we expect the market to resume its downward trend. This will allow us to enter the market at a better price while staying within the broader bearish trend.
RISK/REWARD
With a risk/reward ratio of 2:1, we have positioned our Take Profit (TP) at 1.1018, which is in line with current market dynamics and allows for significant profit potential on the expected move lower. This setup balances both risk and reward to capitalize on the downtrend while managing exposure effectively.
CONCLUSION
EURUSD is showing signs of a shift towards a bearish trend on the 2H timeframe, particularly below 1.1165. A pullback to 1.1151 could present an ideal entry point for a Sell Limit Order, with our Take Profit targeted at 1.1018 for a solid 2:1 risk/reward trade.
