EURUSD - BUY - 8th February 2021




EURUSD - BUY - 8th February 2021 (Closed)


Good evening trading floor,

A tidy win to start the week off on the AUDJPY, we will let the EURAUD run, however we are on support so there is potential for the pair to rally back to our open price.

Tonight we are turning our attention to the EURUSD, there is possibly a good entry point for a swing trade opportunity. The USD is coming back under pressure, and we see the possibility of one final push lower on the USD before a larger reversal opportunity. If you haven’t done so already, take 10 minutes to watch last weeks technical chart breakdown as we go into the USD analysis in more detail. You can find the webinar under member videos in the trading floor.

USD Index (DXY) 4 Hour Charts

We can see a possible corrective structure higher, very similar to the structure that occurred back in August-October 2020. A classic inverted head and shoulders formation, followed by a retest and break of the neckline, with a continuation to the downside.

The same structure can be seen today and the market is currently testing the neck line support at 91. If we see a break to the downside here, it may indicate the DXY is not ready for a change in trend just yet. A break here may also be bullish for metal prices which we will re-visit this week.

EURUSD 4 Hour Charts

If the DXY does move towards fresh lows, this will be an optimal swing trade entry point. There is a rising trend line support in play, and we can see a possible fake breakdown drawing sellers into the market.

EURUSD 1 Hour Charts

The 1.2173 resistance level is a crucial zone that needs to be broken to support this idea. We are looking to leave our TP open, however we are expecting a pull back from this zone.

Trade Setup: BUY market execution, current price 1.2032, stop loss 1.1968 and TP left open but initial target can be found at 1.2172

Stop loss: 64 pips

Take profit: initial target 140 pips 

Trade Setup
BUY - Market Execution

Entry
1.2032

Take Profit
OPEN

Stop Loss
1.1968