Trade: Jumped on EUR/USD’s Uptrend!

I’m taking another chance at a trend trade!

EURUSD

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?

XOXO,

Huck

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7 comments

  1. ForExchange

    Hi!

    I am also in this trade and think it is a good long-term trade possibility based on the long term trend and economic conditions. The stochastic is also on our side.

    I am a bit sceptical though with Fibonacci analysis. How often does it work for you? I mean only defining the Swing High and Low + deciding which Fibonacci to choose gives you so many possibilities that it is very easy to get lost and make mistakes.

    The target seems to be also fine on long term but the stop loss i put a bit under your target.

    I am waiting for your answer and good luck for both of us!

    Reply
    • Hucklekiwi Pip Post author

      I just adjusted my stop loss to 1.3500 to minimize my losses. I mainly look at trend lines and SMAs and use Fib lines as entry levels. You’re right, it can get inconsistent watching 3 possible Fib entries so I try to watch candlesticks as much as I can to get confirmation of bounces before I enter trades. :)

      Reply
    • Hucklekiwi Pip Post author

      Are you talking about 1.3800? It does look pretty strong on all the time frames lol. What level are you expecting to enter?

      Reply
    • Hucklekiwi Pip Post author

      I guess an entry above the trend line would have been a safer bet. I’ll look at Stochastic for early signs of a bounce. Thanks for pointing this one out!

      Reply
  2. Pingback: Update: Jumped on EUR/USD’s Uptrend! | Forex Blog: The Loonie Adventures of a Forex Noob

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