Today’s short position in EURUSD was closed in target booking 750+ pips. While it is never clever going against the trend the reasons why Buying EURUSD has better odds are:
- It is currently trading in oversold zone
- Decline has become vertical and it is showing signs of capitulation. During such vertical moves there is only one explanation, the retail traders are selling (as retails always enter in the end of the moves). You want to go against retails.
- EURUSD retraced 50% of its post March 24th rally and the entry level I am suggesting stands slightly above 61.8% retracement
- If this was a corrective wave (A-B-C), then 100% extension level will serve as good support and turning point (corresponds to entry price suggestion)
Stop Loss for this trade should be 1.1264, slightly below 61.8% Retracement
1st Take Profit 1.1330 , and later 1.1346
If price jumps immediately above 1.1320 and the already established low is not taken out, consider entering with half of the position in current levels.