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- 2006-7-3
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楼主 |
发表于 2008-4-21 18:06
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I'm thinking about taking a small contrarian bet on the probability that we could see a big retracement in EURUSD. Since price action has built up a history of stagnating around 1.49, I can see an easy setup for a short trade that could do well in two of three scenarios that will likely transpire.
Starting with best outcome, we reach 1.49, resistance holds and the outlook for european interest rates continues to deteriorate. Euro drops and it could traverse considerable distance in only a few days.
Second, EURUSD gets up to its resistance and stalls in the area. This could eventually lead up to an ultimate break or retracement, but if we can see price action in this area for a few days, we can better assess the likelihood of a possible break (the highest daily close on record - 1.4870 so far - for example) and get out.
Lastly, we could get a clean breakout. But I wouldn't mind taking this risk, because I'm still long-term bullish and could easily set a breakout order to trigger on the move.
Any other potential bears out there? We wouldn't exactly be trying to catch a falling knife on this considering resistance has been so consistent.Attached Images |
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