EUR/USD Forex Swing Trade Signal - 12/16/2020
Short EURUSD at 1.2170-1.2200, Target 1.2000 area (Swing Trade Signal)
On 12/16/2020 I took a swing trade Forex signal on the EURUSD, this trade was not as much based on technical analysis but based on extreme sentiment to the upside on this pair. The fundamentals have also played a role in my taking this Forex Swing Trade Signal. In this article I will give some key points as to why I have taken the EUR/USD short, I hope this gives you some insight into the thought process behind this trade.
In Technical analysis as many of you may know we use chart patterns, momentum, and order flow charts to determine why certain Forex pairs may or may not present a Swing Trade Signal. We also day trade Forex live in our trading room for short term trades that can last anywhere from 5 minutes to 2 hours. There have been some cases in the past when I decided to hold the trade that was originally intended to be a short-term trade and hold it overnight based on the spectacular outcome of the trade, however, most trades last an average of 1 to 2 hours.
Below is the EURUSD chart, this is a 1 hours time frame and shows the stop run that may turn into a reversal.
The stop run reversal is very typical before a major move, there are no guarantees that we will see a major reversal in the EURUSD, however pointing out some possible scenarios will help us to understand why this move may take place.
Now as we near the FOMC announcement I will stop writing this article and return back to our Trading Room, I will report back on the outcome of our FOMC outcome.
- Posted by fx_Trader
- On December 16, 2020
- 0 Comments