FX.co ★ Trading idea for EUR/USD

EUR / USD closed with an absorption pattern yesterday, which suggests that buyers can hide their risks at 1.20500.

And because of this, short positions have a higher chance of bringing out profit, the strategy for which is presented below:

Since the quote has formed a three-wave pattern (ABC), where wave A is the bearish initiative observed yesterday, short positions may be set up from 1.21, the target of which is a 50% retracement. Risks should be limited to 1.21300, and then take profit as soon as the euro breaks through 1.20500.

Of course, traders still need to carefully assess the situation before placing any position. Trading is very precarious, but profitable as long as the correct strategy is used.

The plan above follows Price Action and Stop Hunting methods.

Good luck!