EURUSD: Sharply higher by 276 pips and just under 1.12 resistance level as Greece EC/IMF agreement said to follow
The medium term daily candle chart below shows the price history of the Euro currency (EUR) versus the United States Dollar (USD). This currency pair is known as EURUSD, and is trading near 1.1161 around time of publication today after moving 276 pips between the session low and subsequent high.
The move today coincides with prospects of Greece coming to an agreement with its creditors according to WorldWideMarkets Chief Market Strategist Joseph Trevisani as explained in his post here today, and as per an exclusive MNI article (available within WWM's MetaTrader4 platform) citing sources that the IMF and European Commission will present a political proposal to Greece.
Last time EURUSD was reviewed in Ideas You Can Trade the pair had fell sharply from 1.12 to 1.10 after failing to hold above 1.14 for more than two days - at the end of last month.
Since then the pair reached 1.0818 on May 27th before recovering towards current levels and then moving sharply higher today from 1.0915 to 1.1191 - just 24 pips shy of a 300 pip day - although is off session highs as of this typing.
If 1.1200 is regained then already bullish move of today may be sustained into the rest of the week, whereas a failure to regain 1.1200 could mark the turn of a steep dive back lower.
Below are examples of how to trade a bullish continuation or a bearish reversal:
1. BULLISH BUY ENTRY ORDER: Create a “Buy Entry Stop” @ 1.1205 with a Limit to take profit @ 1.1235 and a stop-loss @ 1.1175 Risk/Reward Summary: Limit risk = 30 pips profit / (-30) Stop-loss risk = Gain to Loss ratio = 1.00
2. BEARISH SELL ENTRY ORDER: Create a “Sell Entry Stop” @ 1.0994 with a Limit to take profit @ 1.0934 and a stop-loss @ 1.1045 Risk/Reward Summary: Limit risk = 60 pips profit / (-51) Stop-loss risk = Gain to Loss Ratio = 1.17
Medium term daily candle chart (Zoomed-in):