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

As expected, many currency pairs underwent a reversal in the new year, including EUR / USD. It began to steadily decline in the market, forcing buyers to close their positions, especially since the pair is now trading near 1.21300.

In this regard, it is best to sell the euro, and the strategy for which is:

Since the quotes formed a wave pattern (ABC), in which wave "A" is the movement observed in the last three days, short positions should be opened from 1.22100-1.22400, or the 61.8 and 50% retracement levels. However, the catch is that the quote should not go beyond 1.21300 or 1.21.

Aside from that, risks should be monitored to avoid losing money. Trading is very precarious, but also profitable if the approach used is correct.

For the above strategy, Price Action and Stop Hunting were used as trading methods.

Good luck!