As I mentioned in my last post on currencies:
http://www.agetblog.com/tradingtechniques/2009/06/short-term-currency-outlook.html
I am bearish on the Euro and Pound for the short term due to the profit taking rally on the daily USD Index.
On the 60 minute chart of the Euro we have a classic False Bar Stochastic Sell. The trigger is simply a Regression Trend Channel drawn from the low bar at 5:00AM ET to the retracement high at 7:00PM ET. The entry is the break at 10PM ET bar near the price of 1.3900. Our stop is placed above the retracement high at 1.3940. Using a Gann Box my first profit target is at 1.3860 and a limit buy order can be placed there for profit taking. The ultimate goal for this trade is to take out the low and hit the MOB at 1.3780 which is scaled off the screen.
I will update as the trade progresses...
Ron Wheeler
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