EURUSD: Bearish Momentum Picks Up as Pair Falls Sharply in Today's Session, Before Support Was Found Near 1.1200
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 1.1214 around time of publication, after falling from a session high of 1.1378 today.
Last time EURUSD was reviewed in Ideas You Can Trade last Friday, it was hovering over bearish territory and has since entered this more bearish environment - where the prior multi-year low is again within close reach - after today's low of 1.1197.
While the bounce near 1.1200 could be short-lived, a continuation under 1.1200 should be bearish, whereas if the bounce is sustained - at least for a few days - then 1.1300 could be revisited before the bearish trend resumes. Accordingly, the pair looks more bearish today than it did last week, and yesterday, indicating that a lower-low is likely -with a downside target near 1.1100 in the very short term.
Below are examples of how to trade a bearish continuation or a bullish reversal:
1. BULLISH BUY ENTRY ORDER: Create a “Buy Entry Stop” @ 1.1388 with a Limit to take profit @ 1.1490 and a stop-loss @ 1.1301 Risk/Reward Summary: Limit risk = 102 pips profit / (-87) Stop-loss risk = Gain to Loss ratio = 1.17
2. BEARISH SELL ENTRY ORDER: Create a “Sell Entry Stop” @ 1.1195 with a Limit to take profit @ 1.1102 and a stop-loss @ 1.1277 Risk/Reward Summary: Limit risk = 93 pips profit / (-82) Stop-loss risk = Gain to Loss Ratio = 1.13
Medium Term Daily Candle Chart (Zoomed-in):
Medium Term Daily Candle Chart (Zoomed-out):