[B]Long or Short[/B]: Short
[B]Entry Point:[/B] 1.2350 (50% Fibo area)
[B]Stop Loss:[/B] 1.2410 (above previous highs and 1.0400 level)
[B]Profit Target/s:[/B] 1.2000 (previous lows
[B]Reward-to-risk Ratio:[/B] 6.83:1
[B]Risk percentage:[/B] 1%
[B]Indicators used:[/B] Stochastics (14,3,3)
[B]Trade Rationale: [/B]
I think that the euro is way overbought because the OMT program is merely a delaying tactic and not the ultimate solution to the crisis. I also expect AUD to get a boost from the statistic that September and November are bullish months for gold. Also, China is expected to launch stimulus, which should be good for AUD.
[B]Trade Adjustments:[/B]
I’m expecting a long term trade, so I’ll patiently wait for price to hit my entry orders. I’m thinking of placing my stop to break even and adding to my position every 100-150 pips.