EUR/USD – Short Trade

This is a weekly chart. The trade has a Breakeven Stop Loss in place.

We show a zoomed in portion of the chart to point out:

  • A Doji
  • The Bearish Candle that followed (last week)

The trade was not taken simply because of a candle pattern. However, it can be noted that the Doji and the candle that followed were in the area of a longer term 50% level and there is a Price Action observation worth pointing out.

The Bearish Candle Engulfed the Doji and closed near it’s lows after creating a tail that is longer than the body of the candle.

At the time of writing, price is about 120 pips above the 38.2 Fibonacci Level. That could be a potential target.

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