Pair: EUR/USD (Daily)
Long or short: Short
Trade rationale: There’s a head and shoulders pattern forming on the daily timeframe so I think that means the pair’s downtrend will resume soon. Euro zone also had weaker than expected PMI data a few days ago and I read that bond yields in some countries spiked lately, which suggests they could encounter funding issues later on.
Entry: 1.3200, then add every 100 pips.
Stop loss: Initial stop at 1.3300, then I’ll trail it by 100 pips as I add positions.
Reward-to-risk: It’s a potential 21:1 return, assuming the trade goes my way.
Target: My ultimate profit target is the previous low on the daily chart (1.2600)