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Tuesday, February 8, 2011

EURUSD possible trade on the sale side

During the day the EURUSD pair has generally been up for the Euro with its value going twice to 1.3665. Still it was unable to break or even reach the barrier at 1.3680. But the more upward it goes the more favorable the risk/reward ratio seems measured toward that level. The longer time-frame graphs suggest there could be an upward movement of the US Dollar soon of roughly 100 pips or even more.

If entered on the sell side at the current level of 1.3645 with a stop at 1.3685 and a first target 1.3600, the risk/reward is slightly above 1 which is not very profitable. However the higher the pair goes toward 1.3670/80 area, the more profitable and less risky the R/R ratio gets.

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