Yesterday's long from just above the 1.1510 Swing Low proved a success. The subsequent rally may bring part two of the rotational trading plan into play. The basic idea is to fade the extremes of the prolonged "L" formation we are observing on the EUR/USD daily time frame.
This is a short trade from just beneath the 38% Fibonacci retracement of the current wave. Here is the plan:
1) Entry: Sell 1.1634
2) Stop Loss: 1.1652
3) Profit Target: 1.1606
4) Risk vs Reward Ratio: 1/1
If elected, the outlined short trade will yield 28 pips on a return to the 1.1600 handle.
This is a short trade from just beneath the 38% Fibonacci retracement of the current wave. Here is the plan:
1) Entry: Sell 1.1634
2) Stop Loss: 1.1652
3) Profit Target: 1.1606
4) Risk vs Reward Ratio: 1/1
If elected, the outlined short trade will yield 28 pips on a return to the 1.1600 handle.
