With EUR/USD’s short-term uptrend still intact, I’m thinking of adding another position to maximize the move.
See, almost two weeks ago I entered a long EUR/USD position after the pair broke above a triangle pattern. I knew it was going to be a long-term trade since I was aiming for the stars (or 1.2000 in this case).
I was banking on the ECB’s increasingly hawkish stance while the dollar is being weighed by a not-so-hawkish Fed and concerns about Trump fulfilling his fiscal reform promises on time.
The pair is currently about 200 pips from my entry level and it’s showing no signs of reversal just yet. This is why I’ve decided to adjust my stop loss to break even and look for another entry area.
I’ve placed a buy stop order at 1.1710, which is above last week’s highs. Unfortunately, my broker’s spread has yet to trigger my order despite the candle that we’re seeing above.
Another option is to buy the pair around the 1.1580 – 1.1600 area, which lines up with the 50% Fibonacci retracement, bottom weekly ATR, and the 100 SMA on the 1-hour chart.
The next possible catalyst for the pair is the FOMC statement due tomorrow. Market analysts aren’t expecting any changes, though, so there’s a higher chance that traders will continue to bail out of their long-term dollar longs. It also doesn’t hurt that major forex players are now net short USD for the first time in a while.
Here’s what’s up:
Moved SL of intitial 0.5% position to breakeven and now looking for entry either at a new high or a Fib retracement.
Aside from the FOMC statement, I’ll also be watching at lower-tier reports from the euro zone. After all, the recent disappointments in the region’s PMIs and confidence reports can’t be good for the talks that the ECB plans on having “in the Autumn.”
Still, my fingers are crossed for more uptrend for EUR/USD!
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