EURUSD - BUY - 7th June 2021




EURUSD - BUY - 7th June 2021 (Closed)


Good evening team,

 

A very tricky week trading the USD as there was a number of conflicting economic data points. The main takeaway from last week’s data is the US labour market is further away than what the FED is looking for before they consider bond tapering. Therefore we see the potential of a weaker USD playing out this week. Especially when you look at the current structure of the DXY in the latest technical analysis I posted earlier today (check USD technical analysis). The structure is in 3 waves which is a correction rather than a trend. Therefore the DXY should continue the overall trend to the downside.

EURUSD 4 Hour Charts

EURUSD 1 Hour Charts

Based on Elliott wave theory, corrections are made up of 3 sub-waves labelled ABC. The EURUSD appears to have completed the corrective structure and should resume towards the 1.2350 resistance.

 

Trade Setup: BUY market execution, current price 1.2162, stop loss 1.2092 and take profit 1.2350.

Stop loss: 70 pips

Take profit: 188 pips

Trade Setup
BUY - Market Execution

Entry
1.2162

Take Profit
1.2350

Stop Loss
1.2092