EUR/USD: Long at the Trend Line Bounce

Trade Idea: 2012-3-29 02:07 ET

EUR/USD Chart

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.

To recap, here’s my trade idea:

Bought EUR/USD at market (1.3327), SL at 1.3265, PT to be determined. As always, I will risk 1% of my account. Risk disclosure.

XOXO,

Huck

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  • wilderp

    The Euro is sh*t. I’ve learned to only go short when the charts present an opportunity. Every time I go long the Euro, I get burned. Glad I stuck to my trading plan and didn’t make this trade.

  • YH

    Hit SL :(

    • huck

       Yeah that’s too bad… I would’ve gotten a big win too, if I drew my trend line better…

  • essays

    wonderful advice. Thank you very much for the fascinating debate. I really like the things talked about.

  • Kevinstrydom

    Sold GbpUsd after the formation of “long test bar” on the hour OHLC bar. Sold at 1.5902.

    • Kevinstrydom

      Got out with a pip.

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  • Ronald_tsc

    To recap, here’s my trade idea:

    Bought EUR/USD at market (1.3227), SL at 1.3265, PT to be determined. As always, I will risk 1% of my account.Mistake on ur bought unit,should be *1.3327*