2/07/2008

EUR/USD short trade (update)

Update @ 10:02am CST of trade from 2/3/08:

I am setting my limit to close out the trade at or below 1.4480.


As you can see, a 5-wave sequence has unfolded from 1.4941. There is potential MACD divergence forming, which tells me that I should be getting out soon. I am choosing 1.4480 as my exit spot, because I believe there will be at least one more low below 1.4481 to complete Wavev of Wave5 on the chart. I may be missing a bit of profit because price could still test the lower trendline, but I like to exit when the trend is still in place.

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