Hello Awesome Traders!
I trust you're having a fantastic trading week so far. Let's dive into an exciting opportunity presented by EURUSD on its 1-hour chart. This setup is worth exploring as it offers potential for profitable trades.
EURUSD has formed symmetrical AB = CD legs, indicating a potential continuation or reversal pattern.
Time and Price Similarities:
Observing similarities in both time and price movements adds further confirmation to the pattern formation.
Support Level: The price has found support around the 1.07545 level, reinforcing the bullish bias.
Key Levels:
Support: The 1.07545 level serves as a crucial support level, validating the bullish outlook.
Targets:
Consider targeting the 127% Fibonacci extension level of the CD leg at 1.08297 and the 162% Fibonacci extension level at 1.08518 for potential bullish price targets.
Trading Strategy:
Long Opportunities:
Traders may consider long positions, anticipating a bullish continuation based on the symmetrical AB = CD pattern and support level confluence.
Entry Point:
Wait for confirmation of bullish momentum, such as a candlestick close above the recent swing high or a breakout above a key resistance level.
Stop-Loss Placement: Place stop-loss orders below the recent swing low or the support level to manage risk effectively.
Target Zones:
Target the Fibonacci extension levels mentioned above, adjusting position sizing and profit-taking strategies accordingly.