Euro Cross Pick 06.16.09

[B]My picks:[/B] Pending Short EUR/USD
[B]Expertise:[/B] Fundamentals and Technicals
[B]Average Time Frame of Trades:[/B] 2 - 10 Days

Following the long EUR/USD recommendation from the previous week, the pair rose to an intraday high of 1.4101 last Tuesday after I entered at 1.3989, and I moved my stop up to 1.4100 as the pair jumped to high of 1.4177 on 6/11. The retracement last Friday closed my position with a net gain of 111pips. Looking at a daily chart of the euro-dollar, the pair has formed a head-and-shoulders top, and I have placed a short EUR/USD entry as I expect the pair to trend lower over the near-term. As a result, I place a sell-order at 1.3860, the 5/26 low, and place my target at 1.3587, the 50-Day SMA, with the stop at 1.3925, the 5/21 high.