EUR/USD: Eyeing Support on the Rising Trend Line

Trade Idea: 2011-9-15 1:54

EUR/USD 15-minute Chart

You might be wondering why I’ve turned to the lower time frames. The answer is quite simple really. Because of the shifting market environment, I have been having a hard time finding swing trade ideas as of late. As a result, I have decided to stick with day trades until I figure out the market.

As you can see on the 15-minute chart of EUR/USD, the pair has been making “higher lows” for a few days now.

I believe that the pair still has room to move up, so I’m planning on buying once it touches the rising trend line. Of course, I’m not going to just buy immediately… I’m going to be patient and wait for bullish reversal candlestick patterns.

Aside from that, I’ll also be on my tippy toes for updates on Europe’s debt crisis. From what I’ve read, Greek Prime Minister George Papandreou, German Chancellor Angela Merkel, and French President Nicolas Sarkozy presented a united front yesterday and clarified that Greece won’t get booted out of the euro zone.

Aww, ain’t that sweet? In any case, their announcement somehow calmed investors.

I’ll certainly have my fingers crossed for more good news to come out of the region. Hopefully, the economic reports we have listed on our forex calendar will give the euro a boost.

Anyway, here’s my game plan:

If I get triggered (around 1.3650) and the pair goes my way, I’ll ultimately aim for new highs at 1.3800, but I will probably take some profits off the table at 1.3720. As for my stop, I’ll be putting it below the most recent swing low and 1.3600 major psychological level.

Let me know what you think of my trade idea!

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  • Ilya Gruntal

    Huck, in my humble opinion, that 15 minutes is not the best timeframe to trade at forex… I’ve been trying it for so many times, and almost always it was a loss due to huge moves, which are not that neccessary huge at 4H/Daily timeframe…
    Look at recent the daily arts by Big Pippin, he got some point tho again, open up monthly charts, we got a huge channel there, think about it :)
    <3 u.

  • huck

    Thanks guys. I appreciate your feedback. Unfortunately, I wasn’t able to catch the move up since the pair didn’t touch my entry point. Oh well, at least I got the direction right!

  • Aloush29

    the paire is forming a bearish flag ,, go back to one chart ,,, cant go with any long position till it reach 20 ema , look to the daily chart this will should take few days

  • Gulzaar88

    Hi Huck, you should be very careful in trading against the longer term trend – the pair did rise, but you should always move your stops in a counter trend trade to break-even to protect yourself.

    Good Luck!