[TW] 5-19-2012 Short EUR/USD by Pip Devil

Long time no see, traders! Haven’t contributed here in a while as I haven’t had any solid ideas that I could share. In any case, here’s my trade idea for the week! It’s a long-term setup, so I don’t think it’s for everyone.

EUR/USD, Daily


Long or Short: Short

Entry Point: Ideally 1.3000, but if it’s too far, 1.2900 is okay.

Stop Loss: 1.3050.

Profit Target/s: 1.2660

Reward-to-risk Ratio: Depends on the entry

Risk percentage: 2%

Indicators: Fibonacci

Trade Rationale:

After falling for many consecutive days, EUR/USD seems to be starting to retrace. It’s severely oversold so I think we have a good opportunity to sell once price retraces enough and tests significant Fib levels OR 1.3000. The area between the 38.2% and 61.8% is a good entry area.

I think traders will continue to sell the pair all the until June due to the possibility of a Greek exit.

Trade Adjustments: None

My thoughts as well!

Both shorts would be best, near term and longer. Piperiffic…

is 1.29 too high?

I wouldn’t think so. It’s going to take a big retracement for me to even consider the market turning around and starting a bullish trend

Hmm, Price only went up to 1.2800 before it fell. I guess ud1nho is right.

Another way that we could’ve played this is scaling in at 1.2800 first and putting a much larger position at 1.2900.

Did anyone get in earlier?