has been tough for me to trade this year, as its' choppiness
has led it to be the currency I've traded the least. Finally, though, we've established a clear downtrend -- the moving averages are properly aligned, with price below the 50 SMA
which in turn is below the 200 EMA
-- and price has pulled back to resistance within that downtrend. Today's candlestick
, an inverted hammer
off resistance and the 50 SMA
, thus provides traders the perfect signal to jump in on the downtrend.
I've got an order to short here at 2469, with my stop at 2505 and my target profit at 2361. This gives me a reward risk of exactly 3. I would have liked some more room here to allow for a better reward/risk, but this is sufficient, and what I feel the market is naturally giving.