The Setup

The EURUSD is moving in a descending channel whose limits has been respecting so far. The last leg down hit the 1.11366 floor and moved in an ascending leg to touch the 1.12633 level, to dramatically drop and touch again the 1.11366. Then, it changed again direction and moved up again. Yesterday it came up and touched again, guess where? 1.12633 to bounce off of it. Today it tried to move up without success to then, break the triangular formation seen on the 4H chart (below). There is a 1.53 Reward to risk ratio for a short trade targetting again the 1.11366 level, although the pair might travel a bit lower this time.



Parameters of this Setup:

             entry: 1.12022 

Invalidation level: 1.12449

            Target: 1.11366

       Reward/Risk: 1.53


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