The weakness of the US dollar last week led to an incredible rise in the EUR / USD pair. However, by the end of the week, growth has noticeably decreased, and in the daily chart, two pin bars have formed, which is considered a “bull trap”
It also appears on the hourly chart, especially if there is an indicator of round levels.
Taking this into account, the best thing to do is to work for a decline, following this plan below:
The quotes have already formed three wave patterns, wherein wave “A” was the short initiative last Friday (shown in green). Considering this, short positions should be opened, the aim of which is the breakdown of 1.21. Such follows the classic Price Action and Stop Hunting methods. It also has a risk/profit ratio of 1:1.
Of course, traders still need to monitor and control the risks in order to avoid losing money. Trading is very precarious, but also profitable as long as the right approach is used.
The material has been provided by InstaForex Company – www.instaforex.com
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