Our short term trade idea from Friday (long EUR/USD) worked in our favor, and then the pair tailed off in the afternoon. When we opened up our charts this evening, we saw the same set up as Friday. We will enter a similar order using some technical analysis in the image below.
EUR/USD is presently at the bottom of the Bollinger Bands (“BB”) on the below 30 minute chart and presently trading at 1.3915 bid. In addition to the BB support, we seem to be at th bottom of a support line drawn on the “higher lows” support level from last week. Sunday nights are always tough, so we will not chase this order at market, but put in a Buy Limit below market and hope our entry point gets hit.
Trade Idea – Buy Limit on EUR/USD @ 1.3904. Stop Loss order @ 1.3862. Initial Target Level is 1.3955 (we would sell half our position) and a Secondary Target level is 1.4010.
Stay Nimble!
Stephen Leahy
Back Bay FX Services, LLC
www.backbayfx.com
Thanks to FX Solutions for the below image.
