[TW] 6-6-2011 - EUR/USD (Long) by littlebopip

[B]EUR/USD 1-hour[/B]

Long or Short: Long

Entry Point: 1.4430

Stop Loss: 1.4380

Profit Target/s: 1.4600

Reward-to-risk Ratio: 3.4:1

Risk percentage: I’ll risk 1% on this trade so I’m hoping for a 3.4% win if it gets triggered then hits my profit target.

Indicators used: RSI (14)

Trade Rationale: EUR/USD is still in a strong uptrend because it’s inside an upward channel on the 1-hour chart. I don’t want to go against the trend so I’ll take a long trade on this pair.

For my entry, I decided to put a buy order at 1.4430 because that served as a former resistance level and might now act as support. It is also near the bottom of the channel so it’d probably hold.

If the pair bounces from my entry, it could go up to the top of the channel which is around the 1.4600 round number. But if it breaks below the bottom of the channel, I’ll be out of the trade if the 1.4400 level breaks.

Euro has been rallying for almost two weeks already because there’s already a solution to Greek’s debt problems. I read that EU officials already agreed on the second bailout package so this will be good for the euro. And based on the recent economic data, U.S. doesn’t seem to be doing so well so I will sell the U.S. dollar in favor of the euro.

Trade Adjustments: ECB will make their rate statement on Thursday and if they give dovish comments or say that the debt problems will keep them from tightening monetary policy, I will close my trade manually.