Trade Recommendation: EURUSD

On a longer term basis we can see the price action setting up with a triangle formation on the daily chart. This indicates a potential strong move in either direction. However, with the uptrend of the last many weeks still intact, we will want to look for a setup to the upside.

The Monthly Pivot Range high is the only resistance to another move up. Now that the 6 Day Rolling Pivot Range has dropped below our current price levels this has become support for the near term.

With the Daily Pivot Moving Averages (red,yellow, white lines) flat, this is a neutral sign as would be expected given the current price action.

The action to take is to place a buy order to enter the market long if the price closes above the Monthly Pivot Range high on the daily chart.

Place the stop loss just below the Monthly Pivot at 1.2311 and the profit targets as stated below.

Note: If triggered, look for the trade to play out over a period of 2-3 weeks.

Entry Price: 1.2371
Stop Loss: 1.2311
Profit Targets: First profit target 1.2515. Second profit target is 1.2735. Once first profit target is reached, bring stop loss to breakeven, then as the market moves higher, trail a stop loss on remaining position 40 pips behind to safeguard profits or until second profit target is hit.

Disclaimer: 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.