This trade idea was released as a premium trade idea in the PipsMatter Traders room. As we want to continue to assist other traders around the world we are releasing it also for free.
Let us know if you are trading and if the information has helped you make better trading decisions on EURUSD.
Trade type: Reversal
Last week the ECB held its meeting, a meeting in which we saw the EUR head higher for a day, and move lower the very next day.
Looking at the 4H we see a double top, at the 1D chart a 3 higher high pattern and a channel. Lots of technical reasons to sell, and me being a chartist, I love to see this many patterns telling me to short this pair.
Before I continue, the previous trade on the majors was released about 17 hours ago, we sold EURGBP, I currently have 30+ pips on the trade so things are looking good, there is however, news coming out of the UK at 08:30 (in 1 hours time). Average hourly earnings are due to be released and they are projected higher, 2.3% vs previous 2.1%. Lets see how that plays out.
In this trade idea I have Jaco helping me, Jaco is an excellent chartist and has done well for himself by using our techniques which he has pretty much mastered hence the reason he is lifetime member of PipsMatter.
This is Jaco's 1D chart.
Jaco is projecting EURUSD to head down towards the 1.18 area and I could not disagree with his analysis. Looking at his 1D chart we can see 3 higher highs, a pattern that usually acts as a vicious bearish reversal, we have a pin bar on Mondays EU candle and we have a double top. What more can you ask of the chart to give you? It left us more than breadcrumbs... it gave us the directions to the bread.
Here's the 4H chart.
This chart gives a bit of different info, here we see the yellow trendline, which was recently broken and is currently being retested, ironically it's right at the 60% of the recent drop and support level so a double resistance.
Then we have the clear double top indicating that the 1.18 target Jaco wants to reach is very possible.
I took the liberty to add 4 profit target areas for your convenience. They are explained below.
Any of these TP targets will make you money it's just up to you how long you can stay in the trade.
Whatever you decide to do we wish you to make and keep pips!