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Trade Idea: 2011-6-16 3:40

EUR/JPY 4-hour chart

Forget looking for long setups on the euro… In times like these, I’m only looking to do one thing with it – sell, sell, sell!

Pardon my French, but the poop hit the fan for the euro yesterday! Rather than restore confidence in the euro and stabilize the markets, yesterday’s meeting of euro zone officials made things worse.

Europe’s financial leaders just couldn’t come to an agreement on a second rescue package for Greece, and that was enough to spur a bout of risk aversion. To top it all off, Greek protesters have taken to the streets to oppose the government’s austerity measures. Geez, can’t we all just get along??

Anyway, I don’t think anyone sees the euro zone situation improving anytime soon, so I’m expecting the euro to continue sliding down the charts.

Taking a look at EUR/JPY, we see it’s already testing the 114.00 handle, where the WATR lies. Given the bearishness we’ve seen in the past few candlesticks, I wouldn’t be surprised to see this bad boy break support.

Now, I haven’t exactly set orders for this yet, but I’m staying alert for a clean break. All I need to see is some candlesticks close below this level and I’m ready to go!

Any of you guys thinking of playing this differently? Hit me up with some comments on Facebook and Twitter!

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