Sold EUR/USD

The Market Move: After the U.S. congressional elections, the EUR/USD currency pair rose because investors turned cautious, but the rally hit a ceiling (a horizontal range or "rectangle") on the 4-hour chart.

The Reversal: The price topped out after completing a "3-drive" pattern (a sign that buying momentum is fading). It then started to fall, forming a double top and a "3-inside-down" candlestick pattern on the 30-minute chart.

The Trade Plan: The profit target is the middle of the rectangle. Cautious traders can move their stop-loss to break-even once the price reaches the neckline. I suggest invalidation above rectangle if any H4 candle closes above it with a candle size not less than average H4 candle size and not less than 1/3 body above the rectangle. There are high chances of downward move ahead of NFP, at least a correction to mid of rectangle is on the table. #EURUSD #forex #ForexTrading

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