EURUSD Momentum Break: Trade Setup and Alternative Scenario

Based on this morning’s analysis, we’ve seen a break above the momentum high, signalling that buyers remain confident the EURUSD isn’t too overvalued.

As a straightforward principle, we trade what we observe. Buy above the momentum high, aiming for the next decision point at 1.1140 (H4 Structural Point).

Stop Loss:
What gets you in, gets you out!
Technically, if the price drops back below the momentum high (1.10899), it will be a negative signal for buyers. Therefore, we’ll set a conservative stop at 1.1085.

Profit Target:

1.1134 (Fibonacci Target)
1.1140 (Structural Target)
Alternative Scenario:
If the price breaks below 1.1085, buying is no longer advised. We will reverse the position for a trend reset trade towards the Fibonacci buy zone range of [1.1063 - 1.1039].

Happy Trading!