So i will start by trying to analyze the technical position of the pair, defining the main technical key levels.
-We have been in a strong that started in early May, however recently after testing 1.2500 the price has managed to break the first tier falling , that usually hints a minor shift in behavior from strongly to sideways-bearish
-The price has managed to pullback towards the previously broken swing low at 1.2858 and created a new swing high at 1.2886 as shown on chart, before heading lower again.
-The pullback took the shape of a minor or a continuation pattern, and the price succeeded in the latest dip to break the support of that flag.
-However, the price found support at 1.2605 level, and is currently pulling back gradually higher.
-This overall behavior remains illustrative of a sideways to bias for me.
- The price is testing the broken now, so could find renewed downside pressures from here..The 50-days is also near 1.2850 level, therefore, it might be a good area to scalp quick short trades among 1.2800-1.2850. targeting retest of levels near 1.2605 for now, a break below 1.2605 clears the way for the latest major swing low at 1.2500.
-Any extension of the move should be limited below 1.3000 level, which is the main falling for the overall . A break with a daily closing above that resistance could have a implication.
- Do not forget that trading is about probabilities, trades will definitely work some times, and definitely fail some times, so its all about how you manage it and execute it with a clear consistent method,, its all about keeping your profits bigger than your losses.
Hope you enjoyed it. :)
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A) change your broker for a cheaper one
B) change products to cover same idea. Maybe you could trade CFDs instead of cash stocks. With leverage you can have the same exposure, but you won't have cash negative USD exposure. Or trade futures if your acct. size allows you to. 2,6 % p.a. negative carry for a sinthetic eurusd short position is way too expensive.