So far so good! I shorted EUR/USD last week but I think the pair might be seeing exhaustion. Time to take profits on this forex trade?
Just last week we saw a potential retracement trade on EUR/USD after the dollar reacted to a hawkish FOMC minutes by dropping like there’s no tomorrow. Fortunately, price went according to our trading plan, as U.S. session traders were able to push the pair to our entry level before dragging the euro back down.
Right now my 0.5% risk is with 82 pips (+0.34%) in the green. Thing is, price hasn’t broken the support level that we were watching. Does it mean it’s time for profit-taking? I already put my stop losses to break even for a risk-free trade so I’m waiting to see if the euro either breaks below the support level or bounces from it.
What do you think? Is it time to take profits or will EUR/USD’s downtrend have more to give? Any advice would be most welcome!