Bottom end of the range here for the EUR/USD with lots of fan-fare and negative news along with a clearly downtrending pattern from the high earlier this year. HOWEVER, short positions are massive down here AND this is the 5th day without a new low. When there are no "new lows in 5 days" you can take a shot at the long side with a stop under the lows.
I only view upside potential to be to the 133-134 area, and that is where I will want to be placing short positions. But I believe this is a low-risk long-entry here at 130.22 with a 129.30 stop. I normally would recommend using a 3 average range stop or 3 pts, however, this setup allows for a much tighter stop. The problem is that it will only be correct less than 40% of the time.
By: Technical Tim, Wed, Dec 21, 2011 1:01PM EST
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timwest
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FXE is almost back to the "133-134 area where I want to be placing short positions" (from Dec 21 comments). The Euro sure looks close. I'd hate to wait for 'perfect' entry and miss the trade. If you can afford 3 average ranges for a stop loss, then this is a decent place to begin a trade. 10:29AM EST.