Euro Advances Today, Could This Be A Reversal?

Today’s Trading Results: Eur/Usd

I opened 3 lots long after the price had been going up from the bottom on a 4hr chart. I entered on the moving average crossover of a 10 ema and a 25 ema on the 1 hr chart.

open at 1.2796

1st lot sold at +55 pips
2nd lot sold at +100 pips
3rd lot still open

Today’s total +155 pips with one lot still open.

Tomorrow’s Trading Opportunity:
The PMI news that came out in the US was negative again. That was no surprise, this up move was just profit taking and the market makers moving the price until they will be able to find a better re-entry point. This is not going to be reversal unless the price continues to move past the 1.3100 level. The chart that I use is the 4hr chart, I plotted a Fibonacci extension and the price rally in the euro could go to the %.50 level around 1.3015 or if it passes that could go the %.618 level at 1.3112. I am going to hold the position I have until the price reaches one of those fib levels and drops below them on a 4hr chart.

The European Central Bank (ECB) is not supposed to cut rates this week If we get a surprise rate cut by the ECB on Thursday I believe that will have a negative impact on the euro and we could see new lows.

Here is a look at my 4 hr chart, I am not anticipating making a trade tomorrow, I am anticipating further gains before the price begins to drop again.

My trade setup will be looking for the price to go up to a fib level then drop below. When that happens I will enter short.

3 Lots short:
1st lot limit and stop at 55 pips
2nd lot limit of 100 and stop at 75 pips
3rd lot no limit with 100 pips stop and a trailing stop of 85 pips

Here’s to great and profitable Forex Trading.

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Casey Stubbs is the founder of Winners Edge Trading, which is one of the most widely read forex sites on the web. Winners Edge Trading has trained thousands of people to trade the Forex markets.

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