EURUSD Short trade Idea

by | October 12th, 2017, 05:37:05 | News, Technical Analysis | 9 comments

EURUSD

The Fed minutes were perceived by the markets to be Dovish, though a rate hike at the December meeting cannot be ruled out .

I’m on the hunt for a short trade in ‘Old Teflon’ again (EURUSD) . The last head and shoulders worked like a charm and I have my eye on a  larger pattern that could possibly play out. We have a right shoulder forming ( red boxes on chart ) outside of the former (blue boxes) successful pattern. We are also at the 50% move from the Sept/Oct high/low which comes in at 1.1877. – I like to try to watch patterns forming and attempt to second guess them. I’ve had many decent trades from this strategy, and also more small stop losses hit than care to think about.

I plan on taking a short trade at 1.1877 with a tight stop. If my stop is taken i will go on to plan B (always good to have a plan B) and stage my next short sell mission up and around the right shoulder at 1.1910.

 

EURUSD-H1

A zoomed out view in the chart below …..

 

EURUSD-H4

Horatio Dubsly
Latest posts by Horatio Dubsly (see all)

9 Comments

  1. José Ricaurte Jaén
    José Ricaurte Jaén on October 12, 2017 at 8:09 am

    Hola Horacio, if that’s your outlook for EURUSD, I am wondering how bad is going to hit EURJPY.

    • Ryan Littlestone
      Ryan Littlestone on October 12, 2017 at 8:54 am

      Hi Jose. H has a bit of trouble with disqus in China so here’s his reply;

      “Buen dia Juan mi amigo . I tend to look at EURJPY as a different animal to EURUSD . Personally, i think JPY could weaken from here . USDJPY seems to be asleep after the Fed minutes and gives me a problem trying to guess the short term EURJPY direction . If EUR weakens, then it will halt progress in EURJPY – All things being equal ” .

      • José Ricaurte Jaén
        José Ricaurte Jaén on October 12, 2017 at 12:54 pm

        @Ryan@ryanlittlestone:disqus thanks for sharing the message. Also, I sent an email to your contact section. Let me know if you got it.

  2. John Byrne
    John Byrne on October 12, 2017 at 10:41 am

    Horacio, you posted a couple of days ago about the medium term trade of shorting GBPAUD. For awile there I was doubting the trade as it stayed up around 1.699 mark for a day then it dropped and had to encounter the H! 100 & 200 MA’s at 1.6918. It took three attempts to get thru and then there was strong support at 1.69.

    Then wacko it dropped like a stone. Bloody nice trade mate THANKS

      • John Byrne
        John Byrne on October 12, 2017 at 1:13 pm

        I certainly would like to see 1.64. The big question is what will the Aussie do, will it head back up toward 0.80? If it does and the Quid keeps stumbling down then Horie’s trade will work wanders for us all

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