This is a short idea that relies on liquidity
After the euro dropped from 1.2100 the traders that missed the moved tried to get in on the short action, however price is rising to stop them out before continuing with the rest of the down move. If you think about the shorts that got in above 1.2100 and if they are still in the trade some of them would of moved their trailing stops down to a previous high just above 1.1950.
As prices climbs up, long traders are going to get trapped as they look at this as a trend line bounce that could reach 1.2100 or higher.
As price retraces back to 1.1950 where previous resistance was Shorts will enter and price will look like it will head down from here, however it will go back up to take stops and get break out traders in longs before resuming its move back down until it takes out all the sell stops below previous support levels.
EURUSD short idea
Shorting price: 1.1985
Stop loss: 1.2040
Final take profit 1.1580
Disclaimer: This is only a trading idea for educational purposes only
After the euro dropped from 1.2100 the traders that missed the moved tried to get in on the short action, however price is rising to stop them out before continuing with the rest of the down move. If you think about the shorts that got in above 1.2100 and if they are still in the trade some of them would of moved their trailing stops down to a previous high just above 1.1950.
As prices climbs up, long traders are going to get trapped as they look at this as a trend line bounce that could reach 1.2100 or higher.
As price retraces back to 1.1950 where previous resistance was Shorts will enter and price will look like it will head down from here, however it will go back up to take stops and get break out traders in longs before resuming its move back down until it takes out all the sell stops below previous support levels.
EURUSD short idea
Shorting price: 1.1985
Stop loss: 1.2040
Final take profit 1.1580
Disclaimer: This is only a trading idea for educational purposes only
Order cancelled