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28.01.202113:20 Forex Analysis & Reviews: Trading idea for the EUR/USD pair

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Major US indices fell yesterday. In particular, DJIA dropped more than 2%, hitting 3-month lows.

At the same time, the situation in the EUR / USD market did not give any chance for euro bulls, so they were forced to relocate below 1.205.

Taking this into account, it is better to continue working for a fall in EUR / USD, the strategy for which is presented below.

So, since EUR / USD formed a three-wave pattern (ABC), where wave "A" is the bearish initiative observed yesterday, short positions should be opened from 1.211, the target of which is a 50% Fibonacci retracement. Limit risks to 1.21500, and then take profit at the level of 1.20500.

Of course, traders need to carefully assess the situation before placing any position. Trading is very precarious, but is profitable as long as the correct strategy is used.

The idea above follows the Price Action and Stop Hunting methods.

Good luck!

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