FX.co ★ Trading tips for EUR/USD

EUR / USD closed with an engulfing pattern on Wednesday, which, together with the pin bar formed on Tuesday, creates a strong bullish momentum that traders can participate in.

Since there is a three-wave pattern (ABC) in the pair, where wave A is the observed buying pressure in the last two days, traders can open long positions up to the 50% and 61.8% retracement levels of 1.13065 and 1.12921. Set stop loss at 1.12555 and take profit on the breakdown of 1.13838.

This strategy is under the Price Action and Stop Hunting methods.

Good luck and have a nice day!