FX.co ★ Trading tips for EUR/USD

Dollar rose on Wednesday as the speech of Fed Chairman Jerome Powell was different from what was expected. It ended the bullish cycle in EUR/USD and also set excellent levels for short positions.

Now, there is a three-wave pattern (ABC) in which wave A represents the selling pressure in the pair. This means that traders should enter the market by taking short positions from the 50% retracement level, set stop-loss at 1.06950, then exit upon the breakdown of 1.06100.

Take note though that the main target for the pair is much lower.

The final downside potential may be over 2,300 pips.

This trading idea is based on the "Price Action" and "Stop Hunting" methods.

Good luck and have a nice day! Don't forget to control the risks.