Last week I mentioned that one of the trades I’d be keeping an eye out for this week was EURUSD, which was at the bottom of its price channel and a previously established horizontal support level. This week starts off with the confirmation I was looking for to go long. So, I’ve got my order placed at 3650 to go long, with my stop 70 pips below at 3580, and a target of 4140. I’m seeking 490 pips and risking 70, thus offering a reward/risk of 7:1.
The chart above illustrates the entry setup, but to see the target and why it was placed there, we need to zoom out to the weekly:
This may require exiting half if the market advances in my favor to a closer resistance level, like the one at 3840.
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