FX.co ★ Tips for trading EUR/USD

EUR/USD rose and closed Friday with a confident increase in quotes after the release of the US unemployment data. However, during the weekend, a conflict occurred in the Middle East, causing the pair to decline. Today's Asian session opened with it trading below the Friday opening price, and it continued to crash at the start of the European session.

For those that did not take a position on dollar's weakening against yen, this situation could be used to open long positions in the pair.

Looking at the three-wave pattern (ABC), where wave A represents the previous upward movement, traders could consider long positions, with stop-loss set at 1.0490. Place take-profit on the breakdown of 1.0617, 1.0674, 1.0737.

The trading idea follows the framework of the "Price Action" and "Stop Hunting" strategies.

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