This week we will see EURUSD retrace to the Major Resistance at the 1.55 area where it will determine its next move. Bearish Momentum away from this area will confirm a sell while a close above 1.6 means the sell is invalid. The pair is currently at an all time low so it is important to wait for confirmation. This is with the major trend and supported by fundamentals however an all time low of the price means the bulls will be looking to take control. Trade Safely
Trade active:
Great retracement in the first trading day of the week. I was able to scalp EU up towards the resistance. However, watching the major market players put in trades over the night which saw a lot of bullish momentum. The toothpick tops forming on this resistance zone look good but keep your stop loss within reason as we enter the trade to the downside. Keep a risk reward ratio of 3:1 in mind as we look for the next leg in the EU price action, reversals don't usually occur until the middle of the week but only time will tell.
Trade closed: stop reached:
Bullish momentum continued and push the pair through resistance with ease. We close our trade at stop loss.