After trading sideways for a week, euro soared and hit new all-time highs, leaving a key level in the market - 1.21600.
Considering this, bearish traders can open short positions in the market in order to reduce the price of the currency.
According to the Stop Hunting strategy, a three-wave pattern will develop in EUR/USD, wherein wave A will be the selling pressure in the market, or the false breakdown of 1.22500. Bearing this in mind, traders can open short positions, aiming for a 50% pullback from 1.22500. Place stop loss above wave A, and then take profit as soon as the quote breaks 1.21600.
This plan follows Price Action and Stop Hunting methods.
Good luck and have a nice trading day!
