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Trade Idea: 2012-3-29 02:07 ET

EUR/USD Chart

EUR/USD has been making higher lows for the past couple of weeks. In fact, you can clearly see that there’s a clear rising trend line if we connect the lows. I noticed that the pair is trading around it and has just bounced off the 50% Fibonacci retracement level so I bought EUR/USD at market (1.3327).

As for my stop, I placed it below yesterday’s low at 1.3265. If the pair should hit it, support at the trend line would already be broken and invalidate my trade idea. I don’t really know how strongly the pair would move up, so I’m keeping an open-ended profit target.

Looking at the forex calendar, event risk is pretty low. There are a couple of medium tier data like the German Unemployment Change, the Unemployment Claims, and the Final GDP report though none of them normally create much of an impact on EUR/USD. Because of this, I suspect the 50% Fib level, as well as the trend line, to hold.

To recap, here’s my trade idea:

Bought EUR/USD at market (1.3327), SL at 1.3265, PT to be determined. As always, I will risk 1% of my account. Risk disclosure.

XOXO,

Huck

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This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.