EUR/USD potential upward movement, Inverse head & shoulder pattern

September 12, 2023 05:35 AM PDT | By Invezz

EUR/USD potential upward movement, Inverse head & shoulder pattern — Image source: Invezz

Trade idea summary

Buy/sell asset: Buy EUR/USD
Entry price: 1.07135
Stop loss: 1.06778
Leverage: 3x
Take profit 1: 1.07519
Take profit 2: 1.08000
Take profit 3: 1.08650
Timeframe: 1 week
Maximum profit: 4.2%
Maximum loss: 1.05%

EUR/USD chart & technical analysis

EURUSD is indicating upward trend in making and market structure is turning bullish. Inverse/Bullish head and shoulder pattern is an important reversal pattern which indicates bullish trend ahead.

Price has been bearish for a couple of months. However, this going to change as price is making higher highs and has reached major weekly support level 1.06868. All technical strategies indicates bullish trend in making and 1.07153 is perfect price to jump in.

Price is possibly going to drop and retest the right shoulder of the pattern which is around our entry price and will go for new highs.

EUR/USD fundamental analysis

There are no major news events today, however CPI news is due tomorrow which could impact market significantly.

However, I believe till then we would be in good profit.

EUR to USD trade setup takeaways

I expect this trade to playout all the way to 1.08650. However, we have added numerous take-profit levels to ensure we win even if it doesn’t.
I don’t expect the stoploss to hit, but good risk management means we only lose 1.05% if it goes the other way.
I’ll be watching this for at least 1 week. If for any reason other factors affect this and charts change dramatically, I will exit the trade immediately.
Good luck!

The post EUR/USD potential upward movement, Inverse head & shoulder pattern appeared first on Invezz.

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