FX.co ★ Trading tips for EUR/USD

EUR/USD closed with a pin bar on Wednesday, driving buyers under the resistance level of 1.0730. In this situation, the best action is to shift into short positions, as that will minimize, if not avoid, losses in the market.

Selling pressure also surged during the US session, so the bullish trend in the pair was broken.

Thus, considering that there is a three-wave pattern (ABC) in which wave A represents the bearish pressure yesterday, traders should start selling from the 50% retracement level and set stop-loss at 1.0890. Exit the market by taking-profit upon the breakdown of 1.0765, 1.0730 and 1.0712

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

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