Euro Sell @ current levels
Euro has demonstrated weakness last weeks repeatedly trying to break-out area of 1.2550 and subsequently declining. Weekly charts indicate possible retreat – though I believe temporary. Next week’s scenario is shorting euro at current levels – around 1.2320 and expecting the decline to 1.2020 area. As you can see, it is overall 300 pips down potential. We will place a stop at previous weeks’ high attempts – at around 1.2550, so losses roughly around 230-250 pips.
Needles to say, position sizing shall be made considering this big stop distance. This is a mid-term play, so I am very cautious on risk-management.
Have a nice week and profitable trades !