Open trading account 
The EURUSD has dropped 167 points by end of trade yesterday after Janet Yellen of the US Federal Reserve dismissed any rumours of an immediate rate hike.
We can see on the charts the visual effect of this announcement with a bullish engulfing candle stick pattern forming on the EURUSD which could lead to further falls until we reach the 2012 low of 1.2000 which would act as the next significant level of support.
If we were to enter a trade once price reaches the low of yesterday's trade with a stop loss at recent daily highs of 1.258 and at profit target just above the 2012 low of 1.2000 we could see a nice trade set-up for a 1 to 1 risk reward ratio.
Of course this is not a sell recommendation but shows how I approach my trading primarily weighing up the risk to reward ratios. All trading is very risky and you must make sure that transactions you enter are in line with your appropriate risk factors.
Happy trading
We can see on the charts the visual effect of this announcement with a bullish engulfing candle stick pattern forming on the EURUSD which could lead to further falls until we reach the 2012 low of 1.2000 which would act as the next significant level of support.
If we were to enter a trade once price reaches the low of yesterday's trade with a stop loss at recent daily highs of 1.258 and at profit target just above the 2012 low of 1.2000 we could see a nice trade set-up for a 1 to 1 risk reward ratio.
Of course this is not a sell recommendation but shows how I approach my trading primarily weighing up the risk to reward ratios. All trading is very risky and you must make sure that transactions you enter are in line with your appropriate risk factors.
Happy trading