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21.01.202112:54 Forex Analysis & Reviews: Trading idea for EUR/USD

The direction of EUR / USD will depend today on the outcome of the ECB meeting.

Exchange Rates 21.01.2021 analysis

In fact, as seen on the daily chart (D1), euro bears have "debts", which is why the pair will be easily influenced by the upcoming news.

Exchange Rates 21.01.2021 analysis

So, as a result, there are two possible scenarios for EUR / USD:

Exchange Rates 21.01.2021 analysis

First is the formation of a third wave, which will begin from the initiative on January 18-20. The end-point of this will be the take-profit level during yesterday's US session, as well as the daily low.

Meanwhile, the second scenario is a false breakout from the monthly low, where if there is a bullish initiative, it will be possible to open long positions at a more favorable price

Of course, risks are needed to be monitored to avoid losing profit. Trading is very precarious, but also profitable if the approach used is correct.

The strategy above uses Price Action and Stop Hunting methods.

Good luck!

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Andrey Shevchenko,
Analytical expert
InstaForex Group © 2007-2021
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