[TW] 2012-07-21 EUR/USD short by mousteven

[mousteven]

[TW] 2012-07-21 EUR/USD short by mousteven

EUR/USD, Daily

Short
Entry Point: 1.21610
Stop Loss: 1.23402
Profit Target/s: 1.19390
Reward-to-risk Ratio: 1.24:1
Risk percentage: 1
Indicators used: 3sma

Trade Rationale: it's a clear downtrending (May 2 to Jul 20). trendline swinging near 50sma line, forming a flat bottom triangle with a breakout, pullback and continuation (Jul 6 to Jul 20). Support turned to resistance at 1.22850. Right now(7/20) the bar breakthrough the last swing low. No related news on Monday, more likely the down trendline will go further.

Trade Adjustments: Next week is critical which the market will decide either to have long solid red bar or pull back again for some hesitation. If it pulls back and breakthrough the resistance, i'll cancel the trade.