Partner Center Find a Broker

I’m giving EUR/USD another shot today. But hopefully, unlike my trade idea last week, I won’t miss the move with this day trade setup.

On the 15-minute chart, we see that the pair is just consolidating between 1.2600 and 1.2550. In fact, you can even say that there is a bearish pennant in the making.

I learned from the awesome School of Pipsology that this chart pattern usually signals that the pair is about to breakout lower so I will wait for the price to pierce through the support at the rising trend line.


I think selling around 1.2550 and aiming for the 1.2500 handle with a 50-pip stop is a good idea. But as usual, I won’t pull the trigger nor will I set order until I see the fundamentals align with my trade idea.

Since this is a day trade, I’m mostly concerned with the economic reports coming out rather than the entire macroeconomic picture. Specifically, I’m keeping a close eye on the purchasing managers’ indices that are scheduled to come out later. If those reports fail to meet expectations, I suspect the euro will get sold-off again.

With that said, here’s my game plan:

Short EUR/USD at market when PMIs come in worse than expected, stop loss at 1.2605, profit target yet to be determined. Risk Disclosure.



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.