EUR/USD recently formed a double top at 1.0930, signaling a potential trend reversal, and has since begun a correction. After a 600-pip rally since early March, a pullback at this stage is both expected and healthy. Given these conditions, we are placing a direct sell order at 1.0830, targeting a 200-pip profit.
Our bearish outlook is further supported by the formation of a Death Cross, a classic signal of shifting momentum. Although the pair experienced a brief pullback, the resistance held firm at the 50% Fibonacci retracement level, reinforcing the bearish scenario. Since then, the price has resumed its decline, strengthening our conviction in this trade setup.
To effectively manage risk, we are setting a stop-loss at a 1.2% distance, allowing for natural market fluctuations while protecting against excessive losses. Our take-profit target is positioned at 1.0600, aligning with a key technical support level. This setup offers a strong risk-reward balance, and we anticipate further downside in the coming sessions.
Our bearish outlook is further supported by the formation of a Death Cross, a classic signal of shifting momentum. Although the pair experienced a brief pullback, the resistance held firm at the 50% Fibonacci retracement level, reinforcing the bearish scenario. Since then, the price has resumed its decline, strengthening our conviction in this trade setup.
To effectively manage risk, we are setting a stop-loss at a 1.2% distance, allowing for natural market fluctuations while protecting against excessive losses. Our take-profit target is positioned at 1.0600, aligning with a key technical support level. This setup offers a strong risk-reward balance, and we anticipate further downside in the coming sessions.
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.
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.