15 Sep EUR USD Analysis & Potential Short Trade
The volatility in Euro pairs is pretty hairy at the moment. I was stopped out of the EUR:GBP short today on yet another spike of joy following news that the Euro has been saved….again.
Despite this, if a trading set up materialises that I like the look of, I will take it regardless of the news and rumours flying around during the trading day and let the stop loss prove me wrong.
So following on from last week’s look at the EUR:USD, we now have a trend direction in place and it’s the potential backtest of the original break of support that interests me in view of entering short.
4 Hourly chart shows a sharp retrace and I’d like to see this retrace achieve the area of the horizontal line and find resistance there to enter short:
The Weekly chart shows the 20, 50 and 200 MA’s all coming together towards the downtrend line from 2008 to create a possible line in the sand area of powerful resistance:
Over the next few trading days I’ll be watching this with interest in view of entering short. With Euro land volatility so high it may not be a trade for the faint hearted, but if you really believe in your judgement for the likely direction of the next move, then trade small, set stop losses at solid areas of resistance and go for it, moving stop loss to break-even as soon as possible.