Despite Mario Draghi saying not to sell the Euro, I am short @ 1.238
The daily chart has not been able to close above the 50dma and has formed an ascending wedge within the descending channel which is a bearish continuation pattern.
Bearish divergence is indicated on the MACD and Stochastics with the latter also showing overbought levels.
1st Target is @ 1.225 (20dma) where we may see a possible bounce back to 1.24 (top of descending channel) which will provide a good opportunity to reenter short.
2nd Target is @ 1.20 which is a psychological support level before falling to the 3rd target of 1.17 which is the bottom of the descending channel and 1.618 fib extension down.
Set stops to 1.25 which will invalidate this trade idea
selling short at the current price of 1.234 with profit taking at 1.20 this trade provides the risk/reward ratio of 1:2.13
The daily chart has not been able to close above the 50dma and has formed an ascending wedge within the descending channel which is a bearish continuation pattern.
Bearish divergence is indicated on the MACD and Stochastics with the latter also showing overbought levels.
1st Target is @ 1.225 (20dma) where we may see a possible bounce back to 1.24 (top of descending channel) which will provide a good opportunity to reenter short.
2nd Target is @ 1.20 which is a psychological support level before falling to the 3rd target of 1.17 which is the bottom of the descending channel and 1.618 fib extension down.
Set stops to 1.25 which will invalidate this trade idea
selling short at the current price of 1.234 with profit taking at 1.20 this trade provides the risk/reward ratio of 1:2.13