Instrument: EUR/USD
Timeframe: 15-Minute
Trade Type: Countertrend Short
Risk/Reward Ratio: 1.45
Duration: 2-4 days
📉 Trade Parameters
Entry: 1.13891
Target: 1.13049
Stop Loss: 1.14550
Risk: ~0.54%
Reward: ~0.78%
📌 Technical Rationale
Despite EUR/USD maintaining an overall bullish structure on higher timeframes, recent developments on the 15-minute chart indicate a potential short-term correction.
🧱 Trendline Break
Price action has decisively broken below a rising intraday trendline, suggesting weakening bullish momentum and opening the door for a corrective move.
📉 MACD Momentum Shift
The MACD histogram is contracting, and the signal line has crossed downward — often a leading indication of momentum reversal. This shift supports the short thesis as momentum fades near local highs.
📊 Stochastic RSI Confirmation
The Stochastic RSI has rolled over from overbought levels, aligning with the MACD's bearish signal and adding confluence to the setup.
🔼 Lower High Formation
Price failed to break and sustain above the previous swing high near 1.145x. The formation of a lower high within the minor uptrend adds to the probability of a short-term pullback.
🧭 Target Zone Justification
The 1.13049 level represents the next key support, coinciding with the prior consolidation zone and a low-volume pocket — providing a clean downside path for price to retrace.
🧠 Strategy Note
This is a countertrend setup, capitalizing on a temporary retracement within a larger bullish market. The defined structure and risk/reward profile make this a tactical opportunity for intraday or short-term swing traders. As always, monitor key news events and U.S. data that may impact USD volatility during the trade's lifespan.
Timeframe: 15-Minute
Trade Type: Countertrend Short
Risk/Reward Ratio: 1.45
Duration: 2-4 days
📉 Trade Parameters
Entry: 1.13891
Target: 1.13049
Stop Loss: 1.14550
Risk: ~0.54%
Reward: ~0.78%
📌 Technical Rationale
Despite EUR/USD maintaining an overall bullish structure on higher timeframes, recent developments on the 15-minute chart indicate a potential short-term correction.
🧱 Trendline Break
Price action has decisively broken below a rising intraday trendline, suggesting weakening bullish momentum and opening the door for a corrective move.
📉 MACD Momentum Shift
The MACD histogram is contracting, and the signal line has crossed downward — often a leading indication of momentum reversal. This shift supports the short thesis as momentum fades near local highs.
📊 Stochastic RSI Confirmation
The Stochastic RSI has rolled over from overbought levels, aligning with the MACD's bearish signal and adding confluence to the setup.
🔼 Lower High Formation
Price failed to break and sustain above the previous swing high near 1.145x. The formation of a lower high within the minor uptrend adds to the probability of a short-term pullback.
🧭 Target Zone Justification
The 1.13049 level represents the next key support, coinciding with the prior consolidation zone and a low-volume pocket — providing a clean downside path for price to retrace.
🧠 Strategy Note
This is a countertrend setup, capitalizing on a temporary retracement within a larger bullish market. The defined structure and risk/reward profile make this a tactical opportunity for intraday or short-term swing traders. As always, monitor key news events and U.S. data that may impact USD volatility during the trade's lifespan.
GODO Capital Markets
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
GODO Capital Markets
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.