The pair is currently forming an Ending Diagonal
. Ending Diagonals tend to form 5 actionary waves, but this is of course not the always the case as they also sometimes form just 3. As of now 3 waves have been completed so the pair will either drop now or will complete the 5th and final wave and drop after breaking/retesting the 1.3400 level. We have no clear signs for a buy nor a sell at the moment therefore it's wiser to see what signs the market gives us (price action) and act upon them.
For risk and money management purposes, always determine a max. of 2% risk on every trade.
For example on a $50,000 account, this would be equivalent to 1,25 Lots with an 80 pip stop loss.
Targets and closure of positions may be subject to alteration throughout the course of the trade. This is due to the ever-changing and unpredictable nature of the market.
This post is set to be used and serve as an example and in an educational manner and is not to be taken as direct investment advice.