The EURUSD on the longer term time frame looks bullish, however we are anticipating a pull back from its recent highs.
EURUSD Daily Charts
Overall the trend remains bullish with a strong base forming around 1.1600. Last night there was a tag of a key trend line resistance zone. The daily candle close is also a bearish engulfing which is a bearish signal in the market.
EURUSD 1 Hour Charts
There is a fairly obvious 5 wave structure higher suggesting we will see an ABC correction. Secondly, the market is possibly setting up a head and shoulders formation. We will look too position on the right shoulder line above the current market price, followed by an entry at the neckline waiting for the move lower.
Trade Setup 1: SELL LIMIT – Entry 1.1855, stop loss 1.1905 and take profit 1.1740.
Stop loss: 50 pips
Take profit: 115 pips
Trade Setup 2: SELL STOP – Entry 1.1800, stop loss 1.1845 and take profit 1.1740
Stop loss: 45 pips
Take profit: 60 pips
If the market breaks above the right shoulder line we may cut the position early and we will keep you posted.