EUR/USD 1H Challenge
Past challenge from 2026-03-03. See the correct answer and explanation below.
SCENARIO
EUR/USD is at 1.0850. Price broke above a descending trendline that had been in place for 3 weeks. The breakout candle was strong with a full body and small wicks. Price has now pulled back to retest the broken trendline (now acting as support) at 1.0840 and is holding.
Market Context
ECB raised rates last week. Dollar index (DXY) is showing weakness. London session open in 30 minutes.
Key Levels
This is a textbook breakout-retest setup. The descending trendline break on a strong candle, followed by a pullback that holds the broken trendline as support, is a high-probability long entry. Macro factors (ECB hike, weak DXY) align with the technical setup. Place stop below 1.0830 and target 1.0900 for a 1:5 risk-reward.
Prop Firm Implications
This setup offers clear stop placement and strong R:R -- ideal for protecting FTMO daily loss limits while building profit target progress.
The 5%ers allow swing trading. This could be held for a larger move if the daily chart confirms the trend reversal.