Tuesday February 13 at 8:45 ET
Trade Experiment #341 Sell EUR/USD at 1.3040
Stop is 1.3071
Target is 1.2900
Risk is 34 pips
Reward is 137 pips
RRR is 4.0 to 1
Confidence level: good
Accuracy: fair
Reward / Risk Ratio : fair
For research purposes only.
Wave hypothesis : Wave 5 down. The recent high of 1.3043 may not be the ultimate top of this upwards trend - only the top of upwards Wave 3. We may need to exit at the bottom of a downwards either Wave 4 or Wave 3.
Why EUR/USD rose strongly today: The euro gained after several indicators from Germany showed the economic growth unexpectedly accelerated, raising expectations for a March rate hike by the European Central Bank.
German GDP surprisingly expanded at a quarterly rate of 0.9% in the fourth quarter, faster than the pace of 0.6% in the previous quarter. Germany ZEW economic sentiment index rose from -3.6 to +2.9 in February, the first positive reading since July. The current conditions in this ZEW survey also came in higher than forecast unexpectedly, up from 70.6 to 70.9. Following these strong economic data, the EUR/USD rose from 1.2960 to 1.3043 versus the dollar.
Meanwhile, the dollar fell slightly across the board after a report showed US trade deficit widened from 58.2 billion to 61.2 billion in December.
p.s - a continued upwards trend throughout the day which has spiked twice up to 1.3055 places our stop in jeopardy. Traders may want to consider moving their stop north a bit.
Trade Experiment #341 Sell EUR/USD at 1.3040
Stop is 1.3071
Target is 1.2900
Risk is 34 pips
Reward is 137 pips
RRR is 4.0 to 1
Confidence level: good
Accuracy: fair
Reward / Risk Ratio : fair
For research purposes only.
Wave hypothesis : Wave 5 down. The recent high of 1.3043 may not be the ultimate top of this upwards trend - only the top of upwards Wave 3. We may need to exit at the bottom of a downwards either Wave 4 or Wave 3.
Why EUR/USD rose strongly today: The euro gained after several indicators from Germany showed the economic growth unexpectedly accelerated, raising expectations for a March rate hike by the European Central Bank.
German GDP surprisingly expanded at a quarterly rate of 0.9% in the fourth quarter, faster than the pace of 0.6% in the previous quarter. Germany ZEW economic sentiment index rose from -3.6 to +2.9 in February, the first positive reading since July. The current conditions in this ZEW survey also came in higher than forecast unexpectedly, up from 70.6 to 70.9. Following these strong economic data, the EUR/USD rose from 1.2960 to 1.3043 versus the dollar.
Meanwhile, the dollar fell slightly across the board after a report showed US trade deficit widened from 58.2 billion to 61.2 billion in December.
p.s - a continued upwards trend throughout the day which has spiked twice up to 1.3055 places our stop in jeopardy. Traders may want to consider moving their stop north a bit.