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28.05.202113:04 Forex Analysis & Reviews: Trading idea for EUR/USD

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Euro plummeted yesterday and hit 1.21600. Then, it proceeded to trade sideways, mainly because of contradicting US data. On the one hand, US 1st quarter GDP exceeded expectations, while on the other hand, orders for durable goods fell quite sharply.

But since EUR/USD has a three-wave pattern, wherein wave A represents the selling pressure, the best move is to open short positions.

If you already have a sell position in the market, more specifically from the 61.8% Fibonacci retracement level, hold it until the breakdown of 1.21600.

If not, wait for a false breakout, and then proceed to build up a position at the 50% Fibonacci level of 1.22150. Place stop loss at 1.22500, and then take profit on the breakdown of 1.21600.

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

Good luck and have a nice trading day!

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