Happy Wednesday EURUSD traders and observers.

Yesterday’s trade plan has ended in another stop loss. But won’t stop me from proceeding next. Total standing is now 1 win with 7 losses.

As a trader in a volatile market, preserving capital is as equal as gaining profit. We keep our losses small and winners big. We are not after a good win rate percentage but a good drawdown control.

https://www.finlogix.com/analysis/20240206/eurusd-intraday-analysis-and-trading-plan-for-february-6-2024

Going back into yesterday’s trade, I should have adjusted my stop lower which could have kept the trade alive. However, yesterday’s Greenback bulls are on the run and I was cautious that the US Dollar index (DXY) may print new local highs from previous 82-day high which could lead the EURUSD more lower.

At time of writing, we can observe that the DXY index has made a double top pattern based on its previous 2 daily candles close. Zooming out on the 4H chart, the index also printed both bullish and bearish FVGs.

https://www.finlogix.com/analysis/20240207/us-dollar-dxy-index-intraday-analysis-for-february-7-2024

To be honest, the prevous trade plan was a good one just got stopped out right away like I said. I think I am going continue the same plan yesterday with adjustments.

It’s good to see that the EURUSD’s December 2023 External Swing Lows got re-tested by yesterday’s fresh Weekly/Monthly Swing Low. I speculate that the recent long positions got stopped exactly to that liquidity levels. This is our first buy confirmation.

The question in my mind now is that, “Is it time to buy Euro and sell US Dollar”? Getting another hint on a green 4H candle close inside the nearest FVG as our second buy confirmation.

I like to open a break-out buy position targeting the 1W FVG for a 1 to 1 risk:reward score while putting the stop loss this time a little below the fresh Weekly/Monthly Swing Low.

Yearly Candle: Big Red Candle With Short Tail Wick

Weekly Candle: Last check was a Red Shaven Head with Short Head Wick now Long Red Lower Shadow

Based on yesterday’s price action, the EURUSD may have found immediate support and bounding for a short-term recovery.

Let’s find out how these trade analysis and plan go.

EURUSD Intraday Analysis and Trading Plan For February 7, 2024

Feb 07 2024

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