The EURUSD formed a double top today and dropped back into its Asian range in advance of the U.S. open. Risking 17 pips for a potential 65 pips to our daily target at 1.1334 we entered short. As price moved down we moved our stop loss to plus 1 as the U.S. market got underway. As price moved down and long lower wicks formed, we tightened our profit stop further and the trade was closed well short of our target.
There continues to be an increase in fundamental reasons for shorting the euro, but the USD strength has been moderate at best of late. It was interesting to see the U.S. equity markets move higher to start the trading week, after last week’s declines. These are cautious times for trading but entry setups are occurring most days even if the returns are less rewarding than usual.
Note: I won’t be adjusting my charts or trading times to accommodate the U.K. and European Standard time shift this past weekend. In North America, Daylight Savings time will end on November 4th. Next week, everything will be back to normal. This week only, my charts will show the European open and close as opposed to the U.K. open and close.
Good luck with your trading!
