Trade Recommendation: EURUSD
The market has shifted its bias to the short side with the new month’s Monthly Pivot Range above current price levels. The Weekly Pivot Range is also above the current price so this reinforces the downward bias. Lastly, the Daily Pivot Range is grouped along with these Pivot Ranges which is a strong resistance level to lean against.
The Daily Pivot Moving Averages are flat so these are neutral for the moment. This is an opportunity to go short and place the stop loss at a reasonable level. This will give us a good risk to reward ratio trade.
The action to take is to place a sell order to enter the market short if the price trades at or below the swing low level. This will confirm the market wants to move lower. Place the stop loss at the 3 Day Rolling Pivot Range high and the profit targets stated below.
Stop Loss: 1.2309
Profit Targets: First profit target 1.2251. Second profit target 1.2171. Once price reaches the first profit target lower the stop loss to breakeven. Then if the market follows through to lower levels manage the trade by trailing a stop loss 20 pips behind until second profit target is reached or stopped out.
Note: this trade recommendation is good for the next 48 hours. If triggered, look for the trade to play out over the course of 2-5 days.
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.