For Traders

Analytical Reviews

Technical analysis

20.11.202011:54 Forex Analysis & Reviews: Trading idea for the EUR/USD pair

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

The euro continues to trade upward in the market, so as a result, a pin bar was formed in the EUR/USD chart.

What exactly happened is that small players created "provocations" in an attempt to disembark large players from the trend. In particular, they made a false breakout, enabling the quotes to close higher. However, they left the tops untouched.

Such an action, on the one hand, is a provocation of the bulls, but on the other hand, it is a good signal for long positions, because even if the quotes rose sharply yesterday, the sellers' stops were not touched.

Taking this into account, resuming the climb is still profitable, and this can be done by following the idea below:

Since the quotes form a three-wave pattern (ABC) wherein wave "A" is the bullish impulse yesterday, the best action is to take long positions from a pullback, towards 50% Fibonacci.

This plan is relevant until the quotes update yesterday's low (1.8200).

Traders may take profit at levels 1.18934 and 1.19200.

The risk/profit ratio for these transactions is 1.5:1.

Price Action and Stop Hunting methods were used for this strategy.

Good luck!

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.