Forex Trade Idea: Time For A EUR/USD Rally?

Think the euro has seen enough losses for now? Here’s a pretty cool forex setup for the euro bulls out there!

The 1-hour chart is looking friendly for euro bulls with a possible support at the 1.1000 major psychological handle and short-term range support. What makes this setup even more appetizing is the broken falling trend line that just might turn into a support line. Lastly, the 100 SMA has just crossed above the 200 SMA after a couple of days of ranging price action.

EUR/USD 1-Hour Forex Chart

EUR/USD 1-Hour Forex Chart

Are we seeing the start of short-term uptrend for the euro? After all, Greece’s Tsipras has just received a concrete list of requirements for negotiations to continue. While Tsipras and his gang (who aren’t real happy with him right now either) might have trouble getting thumbs up from the Parliament and the Greek voters, for now the deal represents willingness from both parties to come up with a solution to Greece’s debt problems.

I’m thinking of a long entry around the 1.1000 area with a stop below the July 7 low. Profit targets at the top of the range look good especially when coupled with a tight stop and constant vigilance on this short-term trade.

What do you think? Is this something you would take for yourself? Your two cents are most welcome!

XOXO,

Huck

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