This financial blog contains of posts which are an expression of an analytic point of view towards the economy on the macro and micro level, stock exchanges, trading strategies, FOREX market, currency levels, etc. Nothing in it is /and should not be considered as/ an advice to buy or sell something.
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Wednesday, February 2, 2011
EURUSD Short-term possible trade
The upward movement of the Euro shows some signs of exhaustion and a possible retreat to 1.3750/60 could be formed. The European currency failed twice for the last hour to break above the 1.3845 level and there is a bearish hidden divergence formed on both the 15m i 30m graphs. An entry at the moment (at 1.3830) has a positive risk/reward ratio of 0.42 which translates to a twice bigger gains than the possible losses. An even more favorable entry could be formed at the 1.3845 level if the pair gets there again before dropping down.
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