I last posted about this trade here. I am still bullish, and recent price action doesn't negate the bullish bias. However, I think there is a chance that price makes one more slight trend low before going higher, so I am placing an order to buy @ 1.2310, stop @ 1.1950. I am moving the stop on my current long @ 1.2700 to 1.1950. My target is 1.33 and higher.
Notice that price appears to be forming an ending diagonal. If this is the case, I imagine that my current stop would get triggered right before price blasts off. To avoid this, and to capitalize on the potential of one more dip, I am placing a long entry at the lower trendline. My stop is below the 50% fibo of the entire 2000-2008 bull market, so I should be safe for the short term.
I believe there is a higher chance, however, that price stays above 1.23, as the EUR/USD diverged with the USD index. Retail traders are also net short EUR/USD. We just need a catalyst to send this pair higher.