Trade # 14: EUR/USD Short (Update)

I last posted about this trade here. I am moving my stop to 1.5775 from 1.5810. Now my max risk on the trade is 25 pips.

Today, the EUR/USD broke strong support in the 1.5610-1.5640 zone. However, the 5-wave pattern from 1.6037 means we could correct upward from here. On the other hand, because the decline was so sharp, and on very strong volume, it could mean that Wave-iii is extending with 5-waves (labeled (i), (ii), etc.). In either case, my stop is above that last trend high at 1.5767. The weekly pivot point lies at 1.5756, so that should cap price in the next few days at least.

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