By: John Ursus
Timeframe: W1
Recommendation: Long Position
Entry Zone: 1.3100 – 1.3150
Take Profit Zone: 1.3415 – 1.3500
Stop Loss Zone: 1.2950 – 1.3025
The EURUSD has sold-off over the past 4 trading months. The sell-off took this currency pair from an intra-day high of 1.3993 to an intra-day low of 1.3131 where it currently trades. This currency pair has broken down below its 50.0 Fibonacci Retracement, but the EURUSD could see the sell-off falter as a strong support level is in the way of a meaningful move lower from current levels.
Forex traders should split their order into several positions above and below the 1.3100 level in order to reduce risk for this trade. Any further corrections from current levels should be taken as a good opportunity to enter new long positions. Downside potential is currently rather limited while upside potential remains attractive.
