Trade Recommendation: EURUSD
The Euro Currency (EURUSD) is right at the Monthly Pivot Range high and if it closes above this level at the end of this session, this will signal a longer term bias to the long side. With plenty of support from the Pivot Stack created by the Weekly Pivot Range, 3 Day and 6 Day Rolling Pivot Ranges, the probability of a significant downside move looks less likely.
The Daily Pivot Moving Average has a slight upturn (14 day to 30 day: red, yellow) and may move up to a bullish crossover. Be mindful of the swing low low as this is key support, that if broken, would confirm a continuation of the bearish trend.
If the market unfolds with these bullish conditions, then the buy setup will be a very good risk reward trade.
The action to take is to buy when the price closes above the Monthly Pivot Range high level and place the stop loss below the Monthly Pivot Range low. I’ve placed the entry price above the handle price of 1.1800 as these even numbered prices tend to be significant psychological levels of support and resistance. Place the profit targets as stated.
Entry Price: 1.1805
Stop Loss: 1.1715
Profit Targets: First profit target 1.1915. Second profit target 1.1980. Once price reaches 1.1875 bring the stop loss to breakeven (entry price). Then as price moves higher trail a stop loss 0.4500 pips back until 2nd profit target is reached or stopped out.
Disclaimer: The writer owns Litecoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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