It’s All About Trade Location: Pullback For The EUR/USD

Dave Green•Tuesday, August 1, 2017•1 min read

Location, location, location. Getting in with premium trade location is typically a good practice. Buying tops and selling bottoms rarely turns out well. Today’s EUR/USD for the U.S. session has given us an opportunity to get in at an interesting level.

60-Minute EUR/USD Pull Back, Possible Entry

As I mentioned in an earlier post, the intraday low of 1.1804 was a big area to keep an eye on. We saw a nice washout at that level, with a direct test of Monday’s 38% retracement. So, here is the current scenario:

No market fundamentals forthcoming until U.S. Vehicle Sales this afternoon. That is not a crucial number, so volatility will be limited.
The overall market state remains bullish on the daily and weekly charts.
Currently, the EUR/USD is establishing short-term compression around our 38% level at 1.1800-1.1795.
A swing low at 1.1786 set up on the 60-minute timeframe. 1.1785 is a great price for an intraday stop.

Intense selling of the EUR/USD came into play following digestion of the U.S. PMI stats. As of now, we are seeing the bulls recover a bit, perhaps looking to get long from this level.

Buying pullbacks can be a great thing, and going long from 1.1800-1.1810 is a good intraday long. A concrete stop loss can be placed under the session low. This is not a bad place to take a long position for the remainder of the U.S. session.

Trade location is always key. Buying from 1.1800-1.1810 with a stop at 1.1785 is a cost-effective way of going after a 2:1 payoff in today's EUR/USD.

Check out our free forex signals

Follow the top economic events on FX Leaders economic calendar

Trade better, discover more Forex Trading Strategies