Trade Idea: 2012-3-29 02:07 ET
EUR/USD has been making higher lows for the past couple of weeks. In fact, you can clearly see that there’s a clear rising trend line if we connect the lows. I noticed that the pair is trading around it and has just bounced off the 50% Fibonacci retracement level so I bought EUR/USD at market (1.3327).
As for my stop, I placed it below yesterday’s low at 1.3265. If the pair should hit it, support at the trend line would already be broken and invalidate my trade idea. I don’t really know how strongly the pair would move up, so I’m keeping an open-ended profit target.
Looking at the forex calendar, event risk is pretty low. There are a couple of medium tier data like the German Unemployment Change, the Unemployment Claims, and the Final GDP report though none of them normally create much of an impact on EUR/USD. Because of this, I suspect the 50% Fib level, as well as the trend line, to hold.