I’m taking another chance at a trend trade!
This time I went long EUR/USD at market as soon as the euro zone’s manufacturing and services PMIs came in better-than-expected. Don’t forget that those snippets of good news came at the heels of the region printing a strong consumer sentiment! Of course, it also doesn’t hurt that Draghi is optimistic about the economy, saying that the economy is growing again although it’s not broad-based and unemployment is still high.
On the technical side, I’m seeing a bullish divergence, a retest of the 100 SMA and a rising trend line, and a 61.8% Fib bounce on the daily chart. On top of all that, price just went up and made new weekly highs!
I’m a little concerned that more tapering by the Fed will boost the dollar so I’ll be watching this setup closely over the next few days. For now I entered 0.50% of my account on a long trade at 1.3627. I placed my stop loss 150 pips away below the long-term trend line and I’m initially aiming for 1.4000 as profit target.
What do you think of this one? Got any tips?