I have really been on fire lately, my winning trend is upon me so I want to maximize my returns will my "mouse" is hot! Today I started selling EURUSD again (after earning a little over 100 pips on last weeks sell on the same pair).
This trade idea was released to our premium members a few hours ago so I thought it's time to share it with the rest of the traders too.
For this trade idea we will be looking over the daily and 4-hour charts. Now before I continue I need you to keep in mind that tomorrow at 18:00 GMT the FOMC will have it's big meeting. I say big because it comes with the "dots" and a press conference and a lot is expected from the FED during this meeting and since its mainly good news I think that this will give a boost to the USD, at least until the meeting begins.
Let's start with the daily chart,
As you can see above, EURUSD is trying to form a head and shoulders pattern, if today's price action does not break the 1.20 area by a lot then selling could be a reality for tomorrow's FOMC meeting.
As you can see my TP is all the way down at the target zone, so my risk/reward is looking great if this turns out to be a head and shoulders pattern.
Let's look at the 4-hour chart and see why I am already selling the pair.
As you can see the white line supports the idea to short the pair in the current area, but in my honest opinion the best price you can get it and achieve maximal profit is where the white line meets the yellow zone.
I am already in the trade, so far it's up and down but my charts show a lot of potential for strong downside movement.
I trust the FED will make it rain tomorrow!