Day Trade Setup: EUR/USD Uptrend

Here’s a little quick trade that I’m looking at!

EURUSD

A few hours ago the euro took a bit of a hit against the dollar when poor business activity in France and the whole euro region eclipsed the fact that Germany’s services PMI printed at its fastest rate in three years.

On a technical basis EUR/USD had just bounced from a support area near a rising channel support and this week’s open and last week’s highs. Not only that, but it’s also near an area of interest on the 1-hour chart. I’m going to see if this bounce will make it all the way to the top weekly ATR near the 1.3800 and yesterday high levels.

I risked 0.25% at 1.3721 on this one and placed a 50-pip stop and an 80-pip target. I’m planning to hold this trade as long as the channel is intact or until there’s a strong US data that could threaten the uptrend. Maybe US Philly Fed index report? In any case, I’ll be watching this one closely.

What do you think? Is this a valid trade idea?

XOXO,

Huck

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  • Shinobi

    i think its going to close somewhere at 1.3645 this week… just my guest

    • Hucklekiwi Pip

      Thanks for your two cents! We only have a couple of hours more but it looks like the Fed’s QE3 transcripts are causing trouble for high-yielding currencies right now. You could still be right haha :))

  • agsayed

    I think this is risky trade longer term trand below 1.3830 down

    • Hucklekiwi Pip

      Yeah it could happen! 1.3800 is a really significant long-term resistance for the pair. Hopefully it touches my profit orders first before it goes back down though. 🙂

  • Jabb

    we are in the same position

    • Hucklekiwi Pip

      Cool! Where are your entry and exit points? 🙂

  • Easy E

    It’s funny that you made this discretionary trade this morning cuz your HLHB system just gave a buy signal a few hours ago.
    🙂

    • Hucklekiwi Pip

      LOL I saw it too. EUR/USD is on a ranging mode again this week though so I’m expecting a lot of fakeouts. Can’t wait to see those strong trends again!

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