Hey! This is Philip with the Monday trade idea!
Today we are looking to buy EURUSD around the current levels close to 1.1600 with a target toward the 1.1650 area.
EURUSD confirmed the Friday low this morning (on the 1-hour chart) by forming a bullish engulfing candlestick pattern at the
support. Momentum indicators such as the RSI and the Stochastic confirm the bullish signal with the formation of bullish divergence at this second bearish attempt.
The 1.1650 area looks like a good target for a rebound near-term because the 38.2% Fibonacci retracement is in this area as well as the weekly and monthly pivot points (for this week and month). The current levels offer good risk-reward on buy trades.
Note that this trade idea is of
short-term nature and it should work in the following 1 - 2 days (if it will work).
Entry: Around current levels 1.1597 (A push through 1.1600 would likely result in an acceleration of the bullish move)
Stop loss: Below the 1.1569 low
Target: 1.1650 - 1.6660
