EURUSD produced a massive bearish candle yesterday. The daily candle closed at a support level where the price had a bounce twice earlier. However, H4 price action suggests that the price has been on a correction. Today’s first two H4 candles came out as bearish candles, but a Fibonacci level has been held by the price as a resistance. If the level produces an H4 bearish engulfing candle followed by an H1 breakout at yesterday’s lowest low, we may get an opportunity to sell the pair and grab some green pips.  Let us have a look at the H4 EURUSD chart. This trade idea was generated by our powerful Elite Swing Trader System.

The price had a bounce at the level of 1.09370 and went up to the level of 1.09645. It is a flip-over resistance as well as a Fibonacci level. If the level keeps holding the price and produces an H4 bearish engulfing candle, then an H1 breakout at the level of 1.09370 would be the signal to sell the pair. Let us have a look at the summary of the trade...

• Sell Stop Order: 1.09327
• Take Profit: 1.08656
• Stop Loss: 1.09656

The EURO has a high impact news event called “ECB President Draghi Speaks” at GMT 14.30 today. It could create extreme volatility even on the daily chart. Thus, it would be best if the signal comes after the news event. On the other hand, if the signal comes before the news event, we might as well skip taking the entry. Let us patiently wait and see how it ends. If you like our analysis and would like to receive 3 to 7 trade ideas per day, then click here to learn more about the Price Action Society.