Long or Short: Long Entry Point: 97.50 (near former support) Stop Loss: 96.50 Profit Target/s: 102.00, 106.00 Reward-to-risk Ratio: around at least 4.5:1 Risk percentage: 1%
Trade Rationale: Technical - Former support level, doji on the daily chart (in other price feeds)
Fundamental - Possible BOJ intervention, Optimism for the ECB interest rate decision this week, way oversold levels for the euro
I have a pretty tight stop loss considering the profit targets that I placed, so I only plan on moving my stop losses if price action is going my way. I'll enter two orders but keep a close eye on the price for a possible trailing stop.
I think that this would be a very good trade based only on technical analysis. However, I can't simply ignore the fundamentals! I have almost no interest in buying the Euro with what's been happening with Greece and everything else. I am firmly short on any Euro pair until at least after the elections this month. However, based on this resistance I have adjusted my positions and may even look for a small retraction, but I can't see it reaching those targets.
But if it weren't for fundamentals then I probably would be taking this trade along with you! So I wish you the best.