Dollar demand weakened after the press conference of Fed Chairman Powell. This led to a rally in EUR/USD, with the pair gaining 1,200 pips just for today. At the time of writing, it reached the breakdown level from November 29, testing it.
The current scenario looks like this:
Having this situation, traders should consider short positions with stop-loss set at 1.1016. Take profit upon the breakdown of 1.0978 and 1.0968.
The trading idea follows the framework of the "Price Action" and "Stop Hunting" strategies.
Good luck in trading and don't forget to control the risks! Have a nice day.
