EURUSD retracement! At last!

EURUSD retracement is happening much lower than we expected originally, but we finally see the confirmation of change of trend pattern on 30 Min chart. First higher low is a good sign of bears out of the way. Stochastics are about to turn, which suggests a perfect entry “now or never”. We are long from 1.3020 – as soon as 30 Min chart produced a clear bottom.

Stop Loss, as usually – below previous lows, around 1.2980. The target is a bit tricky. Normally we would expect a 30-35% retracement from such a sharp drop (see 4H chart). But the lack of strong trend on weekly and monthly charts can create doubts in traders ahead of those levels. We would expect the most conservative traders start coming out as soon as 1.31 is penetrated and a new bunch of bears trying to put the pair down again around 1.3140-50 level.

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