As can be seen from what I've drawn, we have a pretty textbook inverse head and shoulders pattern forming on the daily timeframe (I always trade the daily, its candles contain the most data and its patterns are the most robust) indicating that a reversal move to the upside is imminent. This move has sort of been foreshadowed by the last daily candle which has long wicks either side and little body, meaning that price has rejected the downside attempt and the bulls are ready to re-enter and make a move back tp the neckline, targeting the 117.2 (and beyond) area. This move may be achieved straight up or we may get a move up, a retest back down and then another thrust up, either way, I like this look of this trade and the idea of a stronger EUR this week.
This pattern allows me a tight stop loss just below the right shoulder I have highlighted and a decent take profit target in and around the neckline giving me a neat 2.5/1 risk reward - I am trading NZD strength this week but even if those trades don't work out, if this trade wins I will still be decently up for the week thanks to the risk:reward, and then if all my trade set-ups work out then we're eating steak!
Best of luck traders have a solid week.
This pattern allows me a tight stop loss just below the right shoulder I have highlighted and a decent take profit target in and around the neckline giving me a neat 2.5/1 risk reward - I am trading NZD strength this week but even if those trades don't work out, if this trade wins I will still be decently up for the week thanks to the risk:reward, and then if all my trade set-ups work out then we're eating steak!
Best of luck traders have a solid week.