The key level of 1.07900 has been decisively broken, and now, we are witnessing a retest of this level. This retracement provides an ideal entry point for traders looking to join the ongoing rally. Market participants who missed out on the initial breakout are likely to seize this opportunity, resulting in increased buying pressure and fueling the continuation of the upward move.
What makes this setup even more compelling is the potential for a short squeeze. As the price surpasses the previous resistance level, sellers who had shorted EURUSD will be compelled to close their positions to limit their losses. This rush to cover shorts can amplify the upward momentum, creating a favorable environment for further price appreciation.
Furthermore, the recent price action has exhibited a notable contraction between 1.07900 and 1.07300, indicating a period of consolidation before the breakout. With the resistance now flipped to support, we can set our sights on a target of 1.08500, capitalizing on the bullish momentum. Taking partial profits around 1.08250 allows for prudent risk management and ensures we secure some gains along the way.
To bolster the bullish case, the moving averages are providing solid support, reinforcing the positive outlook. Placing a tight stop loss just below these moving averages allows for effective risk management while maximizing the risk-to-reward ratio.
Join the bullish charge on EURUSD as the market presents an enticing opportunity for potential gains. Remember to stay disciplined, adapt to changing market conditions, and enjoy the journey towards trading success!
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these news will increase the volatility, itll be interesting to see price reaction. this should cause the target to be reached in a fast way