Dear EUR/USD Price Action Traders
I am looking to start this trading week with a signal coming from the EUR/USD pair. What we have seen in the past few sessions is a correction of the bearish trend, which could turn into more than just a correction. The price has bounced off the lows at 1.0420 and now is residing the area around 1.1200.
The 1.1050 area was tested and the pair formed a pin bar like pattern. There is a rejection around this level and this means that sellers are hesitant. The big question here is whether buyers would be so convinced, so to push the price higher taking into consideration the big picture- i.e. the bearish trend. Therefore, the buyers would be more hesitant to start buying immediately. It might take some time before we see more buyers pushing the price higher. On the other side, if the aggressive players decide to play this trade, this means that we are provided with a buying opportunity.
The entry parameters for a long trade on EUR/USD Price Action would be: entry at 1.1150. The stop should be placed just under 1.1060. The first price target is the level of 1.1300. Then, it comes down to EUR/USD price action to decide whether to hold on to that position or take profit.