Greetings All! Here’s a quick day trade that I took as EUR/USD rallies in a downtrend on the hourly chart. Take a look!
This trade happened kind of fast as I opened up my charts about 15 or 20 minutes ago and saw EUR/USD popping higher and finding resistance just below the 61% Fibonacci retracement level drawn on the chart. Stochastics were also indicating overbought levels.
Here’s the trade i took:
Short EUR/USD at market (1.2576), stop at 1.2640, pt1 at 1.2510, pt2 at 1.2450
Remember to never risk more than 1% of a trading account on any single trade.
I am still short bias on the pair, especially as the Eurozone starts to come center stage. Recent risk tolerance growth on the China stimulus spending and possibly US President Obama’s announcement of “time to buy stocks,” but I think focus on this bit of news will be short lived and traders will return to the global economic recession at hand.
So, I will continue to hold my trade for now, and for those whose analysis has led them to the same trade direction, it may be prudent to let volatility take the market back to high levels and better prices to jump in short.
A couple of significant events coming up, most importantly the interest rate decision from the ECB. Speculation is that they will cut to 1.5%. We’ll see. Stay tuned for updates and adjustments and be very cautious in these choppy markets!