FX.co ★ Trading idea for EUR/USD

Euro hit 1.2 yesterday, after the ECB announced its decision to maintain a soft monetary policy. Surprisingly, the sell stops remained intact, which means that bullish traders can resume an upward scenario.

Wave A in the euro's 3-wave pattern represents the buying pressure that manifested yesterday.

Taking this into account, traders can enter long positions from 1.20300.

Stop loss can be set at the daily low yesterday, while profit could be taken when the quote breaks through 1.20800.

This idea follows the Price Action and Stop Hunting methods. It has a risk/reward ratio of 1.5:1.

Good luck!