EUR/USD: Selling on a Pullback

Trade Idea: 2012-5-17 01:05

EUR/USD Chart

Last week, I rode the downtrend on GBP/USD. This time, I’m going to try out EUR/USD. I hope I’m not too late! As you can see, the pair seems to be starting to retrace. It had hit a bottom just below 1.2700 and then suddenly surged higher. To me, this is a good time to consider selling, as I may get in at a good price!

I’m hoping to jump in somewhere between the 38.2% and 61.8% Fibonacci retracement levels. I have set a limit sell tentatively at 1.2760. I could still change it depending on how price action plays out in the next couple of hours though. I’m also keeping a close eye on Stochastic.

As for my stop, I’ve placed it 70 pips away just to give my trade enough room to breathe. I’ll ultimately be aiming for new lows but I could close early if price stalls at 1.2700.

Fundamentally, Europe’s debt crisis situation still looks far from promising. In fact, according to Pip Diddy, the ECB just stopped providing liquidity to some very undercapitalized Greek banks yesterday. Yikes!

It seems to me that with each passing day, the prospect of a Grexit becomes more and more real as bad news from the region pop out one after another. This is why I’m still bearish on the euro.

To recap, here’s my trade idea:

Sell at 1.2760, SL at 1.2830, PT to be determined, 1% risk. (Risk disclosure.)

XOXO,

Huck

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  • Granticus_Maximus

    Man, that Euro just keeps going down! Have you had a chance to enter yet? I have been hoping for a retracement but there’s been nothing! :|

  • Mcaochuka

    It would be too early to sell at that price! You should be selling at 1.2950-1.3100 area if you don’t want to be quickly squeezed out

  • Samarkand

    Hi There Huck. Do you really think it can go up to 0,500 and 0.618 levels? is it possible that it can just go down without any warnings?