The Euro seems stuck in rather a choppy range between 1.0620 and 1.0800, and with little economic data to drive it today, that may well continue. The hourlies hint at being in the early stages of building a reverse head shoulder formation which would have a neckline at around 1.0720 and an objective at around 1.0800. It is too early yet to confirm this being valid, but the risk reward odds of buying a dip to 1.0660, with a SL placed below the 30 Jan low of 1.0620 seem reasonable, while looking to take profit just ahead of the objective. The 4 hour charts are carrying some positive momentum as well, which looks as though it may underpin the Euro today.
The alternative way to trade this is to validate the Head/Shoulder formation by buying an upside break of the neckline, currently at around 1.0720 and hoping for the push on to 1.0800. In that case, keep the SL at around 1.0770.
Buy @ 1.0660
SL @ 1.0615
TP @ 1.0780
This order is only good for entry purposes until 5.00 pm NY time today
This information is a personal view only, this being a trade being undertaken by FX Charts. It is not an inducement or recommendation to trade although you may do so if you agree with the parameters of this idea.. Refer to our disclaimer here.
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