Trade Recommendation: EURUSD

This trade recommendation is setting up quickly and requires prompt attention

The bias remains to the upside for the short term with the price trading above the Daily Pivot Range (blue dots), therefore this level is key support.

The 14 Day Pivot Moving Average (red) is turning up, and crossing the 30 Day Pivot Moving Average (yellow) and this is bullish.

The price action is setting up for a retest of the recent swing high of 1.24531. However, the price will have to penetrate and hold above the 3 Day Rolling Pivot Range (RPR, green and yellow dots).

The action to take is to place a buy order to enter the market long if the market closes above the 3 Day RPR on a 60 minute chart. Place the stop loss a pip below the Daily Pivot Range low and the profit target stated below.

Note: If triggered, look for the trade to play out over a period of 24-36 hours and if no significant move after 3 hours, exit the trade.

Entry Price: 1.2454
Stop Loss: 123.80
Profit Targets: Profit target 1.2525. Once market breaks out and reaches 1.2485 bring stop loss to break even, then trail stop loss 20 pips behind as price goes above 1.2485, until profit target is reached.

Disclaimer: The writer has no positions in the forex markets but does engage in short-term trading of forex and futures.

Featured image courtesy of Shutterstock.

I am the founder of VirtuesTrading.com, where traders can learn to use my Virtues Trading System. Formerly a Commodity Trading Advisor, I got my start in the Energy and Precious Metals Options & Futures pits of the New York Mercantile Exchange. I operate on the premise of efficient markets, the management of risk through the analyzation of price action and technical indicators. I have a BA in International Relations from the University of Southern California.