This pair ended last trading week leaving in its trail a nice entry signal for the coming week.
The pair traded to the down side during last trading week to test supports at 0.9080, leaving behind a bullish pinbar showing clear rejection of lower prices at that level. Adding strengths to the buy entry that this bullish pinbar screams is the fact that we have our 50 fib level, as well as 50 week MA lying just under the tail of the pinbar - all coinciding with the exact level of the weekly support 0.9080.
The combination of all the confluent factors above gives us a good recipe for a nice buy at the open of market. See chart below for details.
Trading action
Enter a buy (limit pending order) @ 0.9142
set stop loss of 60 pips 0.9080
1st TP of 1 : 2 @ 0.9263
2nd TP of 1 : 3 @ 0.9324
The way we will be approaching this trade is to move our stop loss to our entry point if/when the market trades up to our 1st TP at 0.9263 (if possible, take partial profits here), then wait for the market to reach our final TP of a 1 : 3 @ 0.9324. However, if you are ok with earning 2 times your risked amount, then close out totally when market gets to 0.9263.
Please do well to manage your risk on this one by not over-leveraging your account as any setup can fail - this is forex! Happy trading and have a great Sunday!