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SamKent
Nov 11, 2014 8:30 AM

Keeping thing simple with EUR/USD trend following Short

Euro Fx/U.S. DollarFXCM

Description

While the trend in the EUR/USD remains intact, the current outlook on the 4hour looks bullish, with a significant bullish divergence on the RSI. This should be an opportunity to look for a point in which the trend may continue. Currently, we're looking at the 50% retracement of the previous impulsive down-move as a good candidate. We're looking for resistance from the flat upper kumo, coupled with the 100 SMA, and slow stochastic nearing overbought levels. If things allign, we'd be looking for the 1.214 handle as our main target, this would complete an ABCD pattern. Like most trend trading plans, we should have very good r&r on our trade.
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