EUR/USD is the currency pair, SHORT
EUR/USD, 3-4 Days
Long or Short: Short
Entry Point: 130.0400 - 129.700
Stop Loss: 1.3100
Profit Target: 50 - 100+ Pips
Coming off of last weeks rally, The Euro continued to trade higher off of positive German Data. Although tomorrow we await more German Print, such as the German Trade balance, There is room for potential downside during the Euro hours. The underlying reason, the lag in manufacturing in Germany according to the latest production data.
This is a perfect Catalyst to start the week for all the Bears. From a technical standpoint, The Euro is entering levels that are indicating corrective retraction. As you can see from the Four Hour chart, Right before the first green channel line, The Euro broke out of its Bollinger Band and continued a rather sideways yet upward momentum. Looking at the bigger picture, to me, this is indicative of an overbought Euro that is susceptible to a correction. Furthermore, Below the chart I have setup a Stochasic Oscilator. Observe below the Green Eclipse, indicators have been hovering over the 80. Level. It is entering a level of “Exhaustion” Which also indicates an oversold market.
Needless to say I am short Euro/Dollar. I am looking to hold this position for The week as More Euro concerns continue develop from the underperforming Eurozone nations (Portugal, Italy, Spain). This is also a big week for the US Dollar, Fed minutes on Wed. I believe Bernanke will cautiously resume a hawkish outlook yet a hinting towards a much slower pace in jobs growth as expected. The Next few days are an open lane for the Dollar and a great opportunity for you scalpers to cash in. Happy Trading.
"The Bulls Make Money The Bears Make Money, But the Pigs get Slaughtered"
About me: I have been Trading Currencies for Over Eight years. I am currently using algorithmic trading methods and applying them to opportunistic Fundamental events. I have worked for some of the world Largest Investment banks. I day trade and analyze Global Economies.
