EUR/USD/Trade Ideas

EUR/USD: Short trade strategy

Chifbaw, one of the strategists that I’ve started monitoring, has gone short EUR/USD near 1.2750 with a very tight stop at 1.2770 and profit targets at 1.2715, 1.2690, 1.2650 and 1.2580. I like the side just not sure about the timing but the risk-reward is outstanding.

” This morning the EURUSD is bearish because of a lack of decision on Greece, and may be more because of the very long night of discussions that the European ecofin ministers had (suggesting troubles). We expect the EURUSD to at least go test its hourly support trend line that now comes at 1.2715. There is a chance that this trend line does not hold and an acceleration to the downside might bring us to 1.2655 today. We therefore recommend shorting the EURUSD at its current levels, and if we indeed reach 1.2655, to buy the EURUSD for some short term rebound and possibly more. “

  1. I disagree with this – I think the EU will waffle in a range until next week (due to the Thanksgiving weekend) and then is likely to break to the topside. Since the low at 1.2662 on Nov 13 the EU has made higher highs and higher lows, indicating accumulation for an upside breakout. I reckon a trade is not worth taking for less t han 50 pips move. Noise alone will account for 20 pips either way.

  2. Well,if what sean says,about Europe undoing what Asia has done is true(and my gut feels so),i think the gap is gona get filled and the tight S.L might just come in handy for Iridium’s recommendations.We wait and see….

  3. Zenfxtrader, a trade is worth taking if you make money and your risk reward is good 😉

    But more seriously, you forgot stop loss hunting. If there will be plenty of buying interest in the 1.27-1.2715, stop losses in the 1.268-90 will be there. And we know what happens afterwards…

    1. > depends on your trading style / time horizon. The chifbaw trades are very short term. My style is swing trading – a few hours to a few days.
      As to risk/reward – how can you know your reward in advance? I know the standard answer – have a fixed TP level. Why would you get out at a certain level if the technical picture suggests further gains are likely? Remember cut your losses and LET YOUR PROFITS RUN.

  4. Iridium do u feel my flow(rubbing it in)!On the business side of things,once the gap is filled or thereabout,it is a good place to sell as the fundamentals say the teflon has no business up there…gd luck all.

  5. With u,Sean.It is important to keep this interraction civil as we learn from each other.Of course we can ‘josh’ around like i did a while go but respect is paramount.Cheers.

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