FX.co ★ Trading idea for EUR/USD

EUR / USD hit 1.19900 after Jerome Powell said the Federal Reserve will maintain its super-soft monetary policy.

That being said, the most ideal manoeuvre is to bring the prices down. This can be done by following this strategy:

Since the euro formed an ABC wave structure where wave A is yesterday's bullish initiative, traders can open long positions in the market and work for a 50% retracement from 1.19500 and 1.19400. Limit should be placed at 1.19, while profit should be set at 1.19900.

Of course, traders should remember to control risks in order to avoid losing money. Trading is very precarious, but profitable as long as you use the correct approach.

The plan above follows the classic Price Action and Stop Hunting methods.

Good luck!