The daily chart for the EUR/USD pretty much sums up today’s action. A big red candle is forming and downside support is coming into play.
To capitalize upon the sell-off, a long position from just above the daily 62% current wave retracement is a viable entry. Here is the trade:
1)Entry: Buy 1.1611 2)Stop Loss: 1.1572 3)Profit Target: 1.1636 4)Risk vs Reward: Sub 1/1
Convergence of technical indicators is always a good thing. While the 62% retracement (1.1608) stands alone, the proximity to the round number of 1.1600 gives credence to its potential effectiveness. This trade will remain valid until Friday's close.