Monday, August 1, 2011

Trading the US debt agreement

The euro spiked earlier this morning during Asia, then formed a bull flag as part of a head and shoulders - this is a chart formation that the masses are seeing, and the continuation of the price action is very likely.

As I type the trade has broken out from the Head and Shoulders pattern on the hourly, which we can see offered a very tight stop loss of 1.437 on the 10 minute chart.

Getting the target on 1/3 of the position will be from taking the low 1.425 from the breakout point 1.44 to get a 1.455 target.

I've taken a max position here as the fundamental newsflow and the price sentiment will remain positive at least until tommorrow and possibly a continuing relief rally during the week.