Bias: Bearish
Market Structure and Reasoning:
The EUR/USD has been in an overall downtrend in recent days, forming successive lower highs and lower lows across multiple timeframes. The 4-hour chart shows a clear bearish momentum with price recently breaking below key support levels. On the 1-hour timeframe, we can observe a series of bearish candles with minimal retracement, indicating strong selling pressure. The 15-minute chart confirms this bearish structure with price trading below previous support zones.
Trading Setup:
The price is currently hovering around the 1.0788 level, which appears to be a weak support that has been tested multiple times. The overall structure suggests potential for continued downside movement.
Entry: 1.0795 (Limit Order)
Look to enter on a retracement to the 1.0795 level, which was previous support and may act as resistance on a retest.
Stop Loss: 1.0830
Place stop loss above the recent swing high, limiting risk to 35 pips.
Take Profit (TP1): 1.0760
First target at the recent low, providing a favorable risk-reward ratio.
Extended Take Profit (TP2): 1.0730
Second target at the psychological level which should provide stronger support.
Order Type: Limit Order
Wait for price to retrace to the entry level rather than chasing the current move.
Alternative Scenario:
If price breaks above 1.0830 with conviction, the bearish bias would be invalidated. In that case, wait for a potential shift in market structure before considering new positions.
Market Structure and Reasoning:
The EUR/USD has been in an overall downtrend in recent days, forming successive lower highs and lower lows across multiple timeframes. The 4-hour chart shows a clear bearish momentum with price recently breaking below key support levels. On the 1-hour timeframe, we can observe a series of bearish candles with minimal retracement, indicating strong selling pressure. The 15-minute chart confirms this bearish structure with price trading below previous support zones.
Trading Setup:
The price is currently hovering around the 1.0788 level, which appears to be a weak support that has been tested multiple times. The overall structure suggests potential for continued downside movement.
Entry: 1.0795 (Limit Order)
Look to enter on a retracement to the 1.0795 level, which was previous support and may act as resistance on a retest.
Stop Loss: 1.0830
Place stop loss above the recent swing high, limiting risk to 35 pips.
Take Profit (TP1): 1.0760
First target at the recent low, providing a favorable risk-reward ratio.
Extended Take Profit (TP2): 1.0730
Second target at the psychological level which should provide stronger support.
Order Type: Limit Order
Wait for price to retrace to the entry level rather than chasing the current move.
Alternative Scenario:
If price breaks above 1.0830 with conviction, the bearish bias would be invalidated. In that case, wait for a potential shift in market structure before considering new positions.
Trade active
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.