Remember PipHutters, patience pays.
Daily Outlook: I've been selling for weeks now and, despite the need for a retracement at some point, I see no need to stop now. Technically, we just had a bearish break of the ascending triangle which opens up 1.2500 and 1.2400 as longer term targets. Fundamentally, Europe is looking like a more complicated than a Chinese finger trap as investors doubt the $1 trillion (or is it $750 billion? I lose track) is a long-term fix as the rest of the PIGS struggle with low-growth and heavy debt.
Trading Idea: Primary trade is to look for shorts in the 1.2720-1.2750 resistance zone on a rally. From 1.2720 short targets are 1.2695, 1.2665, 1.2635 and 1.2600 for +120 pips profit. Secondary trade is a short on a sustained close (1h charts) below 1.2600. This is a bit riskier so I would wait for the close and then short on a pullback to get a better entry price before going in with multiple lots or heavy leverage.
If we see a close above 1.2750 that could signal a bullish retracement has begun and opens up a potential challenge to 1.2850 and 1.3000 in the short-term. I'm not entered a long on the EUR/USD for awhile. It is smarter to wait for higher-probability short setups to develop.
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