Togude analyzes EUR/USD on the daily chart, spotting a bearish channel since April 8 with a candle closing above it. He recommends a long trade at 1.08508 with take-profit at 1.08803 (29 pips), citing a weak dollar and support from a trendline.
Chapters
I'm Togude. This is, um, the trading analysis on EUR/USD for today. So this is the instrument on daily charts. I've been able to draw a channel, um, for it. You see that EUR/USD has been trading within this channel since the 8th of April. This bearish channel has been trading— it has been trading within the channel up till this particular candle that was able to close slightly above the channel. So it traded up onto this point and is currently retracing. So what we should be expecting on this instrument with this retracement— this retracement is just a retest on this trend line which is currently acting as a support. For Euro USD, and let me also quickly show us the US index. This is the US index also, which measures the strength of the greenback against major currencies. And we can see also that the USD index is currently trading bearish, which means the strength of the dollar is currently weak at this time. So let's get back to. Um, the instrument we are looking out to trade today, which is EUR/USD. So we're expecting a retest on this trend line before this bullish momentum will continue. So we should be looking at placing our buy trade somewhere around this side, that's at a price level 1.08508, and then we can target our take profit either at this proven resistance here, which is 1.08803. So we should have our entry point at this price and then have our TP at this price level. That's how many pips there— that's about 29 pips. So we can also have our stop loss within this, um, trend line. So let's say somewhere within this region. This is the recent low on EUR/USD. So at this point, we can have our stop loss. So we have our entry point here, we have our take profit here, and then we have our stop loss here. So if you want to have the trade now, just go to new order because the instrument is not currently trading at this price level, so it's going to be a pending order. You have, um, a buy stop. But if you are also planning to trade the retest on this trend line, because EUR/USD will likely retest this trend line before pushing up, so you can use a buy limit, a buy limit around this price level. So that will give you more room to make more money compared to someone who is trading the buy stop. Just that the buy stop is safer compared to the buy limit, because for the buy stop, if it doesn't retrace up, your trade will not be triggered. But for the buy limit, immediately the instrument trade lower up until this point is going to trigger your buy trade. And if it doesn't continue the bullish momentum the one will be on, um, a loss. But if the instrument is able to retrace and get to this point later on, then the probability of it continuing in that momentum is pretty high. So whichever one you go for, this one has a better reward with slightly more risk compared to the buy stops. But whichever one you go for EUR/USD looks more like a buy today. So let's make some money off EUR/USD today. Thank you.
