FX.co ★ Trading idea for the EUR/USD pair

News that Pfizer has completed its third vaccine test led to the sharp strengthening of the US dollar against other currencies, including the euro.

In fact, the only level that euro bulls could put stop orders now is at 1.17900.

Taking into account such a scenario, plus the fact that the quotes have formed an ABC pattern on the trading chart (wave "A" is the downward initiative from yesterday), the best action right now is to open short positions, starting from the 61.8 and 50 Fibonacci retracement levels.

The risk / profit ratio of such a transaction is 1: 1.

But of course, there is still the need to manage and control the risks in order to avoid losing profit. As we all know, trading in this market is very precarious and uncertain, but also very profitable provided that we use the right strategies.

Price Action and Stop Hunting were used for the above trading idea.

Good luck!