Hello dear friends!
I hope your weekend was a good one so far. Last week I was about to write another article when the price was right below 1.3, technically speaking a perfect place to short but something went wrong and in a short period of time the EUR/USD was led to sky reaching 1.32. I heard talk about professional traders who sold there too and got caught kicked out from market shorting 1.30. I feel sad for those caught off guard and stopped out there. Do not blame yourself or the market for it because even pros get stopped on unpredictable moves like these. Twice in my trading career I saw such a behavior. We always get prepared for the behaviors that we know. But always be prepared for the events we do not expect, for example the last week´s happening. Stop loss and money management plays the crucial part on it.
Right now the EUR/USD is bonded to 1.3000-10. I do not expect the currency pair to rise more than we saw but yet I believe in a bearish endeavor back between 1.30 and 1.2750. Our trade plan will focus minding that the last bullish behavior sudden reaction on news that tend to be corrected. Core Retail Sales and Retail Sales can mix up a little bit the short term trade so wait for traders to digest this news to clearly see the side.
Let´s draw our lines of our trade plan.
By the time I´m writing this eurusd is showing signals to be going below 1.30 so that is our key trigger support. Wait for a break and if possible a good retracement right below 1.30 than short targeting around 1.2930. Below it we may see a retest of 1.2750 yet this week.
For the up side, look for the clear break of the yellow slightly bearish trend line, a proper retrace and we can look for buy opportunities back to a retest of 1.3200.
That is it folks. Draw your lines and get ready. Please do not forget to calculate your risk and use stop loss. Be always prepared for the unknown!
Nice week and pips friends!