The EUR/USD 4-hour chart confirms the downtrend that is seen on the daily chart. While this means we should be looking for selling opportunities based on the direction of the daily trend.
The EUR/USD 4-hour chart confirms the downtrend that is seen on the daily chart. While this means we should be looking for selling opportunities based on the direction of the daily trend, we should also attempt to time our entry to increase the chance of success on the trade. Some traders who like to trade breakouts could be waiting for a move down through support which is the previous low of 1.2328. A move down through that level would again confirm the downtrend and potentially offer a solid trading opportunity as many sell stop orders are typically placed below support. Protective buy stops could be placed above the previous high of 1.2631 with profit targets set at twice the risk to maintain a 1:2 risk:reward ratio.