EURUSD – SELL – 3rd June 2020

EURUSD – SELL – 3rd June 2020 (Closed)

Good evening team,

Crazy week with the USD devaluation continuing. Markets are ignoring the major news headlines across the globe and continuing the risk on mode. However, it appears as though we may have reached a bottom with the DXY breaking out of a descending wedge/channel.

DXY – Daily Charts

DXY – 4 Hour Charts

The DXY is fast approaching the 1.27% FIB Extension, there is a very sharp descending channel/wedge. A break to the upside of the wedge will suggest some strength returning to the USD.

We are looking to position ready to catch that move.

EURUSD – 4 Hour Charts

Elliott waves theory is very subjective, however it is based on a 5 wave principle.

EUR now has a bullish bias, however we are expecting a pull back lower once we see a break of the wedge formation. Wave 4 generally retests the top of wave i meaning we can target the 1.1025 level.

Trade Setup: SELL MARKET EXECUTION – Entry price 1.1195, stop loss 1.1250 and take profit 1.1030.

Stop loss: 55 pips

Take profit: 165pips

Trade Setup
SELL - Market Execution

Entry
1.1195

Take Profit
1.1030

Stop Loss
1.1250