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.
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.