Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View More
EUR/USD Retracement Offers Entrys on 1622 Pip Trend

EUR/USD Retracement Offers Entrys on 1622 Pip Trend

Walker England, Forex Trading Instructor

The EUR/USD is sizing up to be one of the best trending pairs of 2012. The pair has declined over 1622 pips from its October 2011 high at 1.4246. Today’s price action has brought the EUR/USD off of its yearly lows at 1.2624. As the pair retraces, astute trend traders will utilize the opportunity to establish fresh short positions.

Traders will keep their eye on the Economic Calendar, for upcoming news events that may add momentum to the trend. Friday, is set for the release of German Producer Prices. This number is considered an early sign of inflation, which ultimately affects their central bank’s policy.

Moving to our 2Hour chart, we can see the continuation of our trend. Oscillators can be a great way to time your entry’s with the trend. Below, we will see two previously set entrys using the MACD indicator. Traders should again wait patiently for entry as the MACD line crosses the signal line to enter our trade. Stops should be set above the previous high, with limits looking for the creation of lower lows on the pair.

My preference is to sell the EUR/USD on a MACD crossover. Entrys are expected to be near 1.2700. Stops should be placed at the previous high above 1.2800. Our limits should be set at 1.2500 or better for a clear 1:2 Risk/Reward ratio.

Alternative scenarios include price breaking higher toward resistance near 1.2880.

---Written by Walker England, Trading Instructor

To contact Walker, email instructor@dailyfx.com. Follow me on Twitter at @WEnglandFX.

To be added to Walker’s e-mail distribution list, send an email with the subject line “Distribution List” to instructor@dailyfx.com.

DailyFX provides forex news on the economic reports and political events that influence the currency market. Learn currency trading with a free practice account and charts from FXCM.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES