Dollar has been rising for the past three days. Even the news that the ECB lifted its interest rates could not reverse the situation. Most likely, this scenario will continue this week because ahead is the Fed's monetary policy meeting, wherein rates could increase again.
This only means that EUR/USD will decrease further this week.
So, given that the pair's movements formed a three-wave (ABC) pattern, where wave A represents the selling pressure last Friday, traders can enter the market by selling up to the 50% and 61.8% retracement level, with stop loss at 1.02500. Exit on the breakdown of 1.01200.
This trading idea is based on the "Price Action" and "Stop Hunting" methods.
Good luck and have a nice day!
