Some interesting moves over the Thanksgiving holiday in EUR/USD has caused us to close out our longs from 1.3427 for 170 pips + and enter short.
Key reason as always is how the Retail Order book is shaping up and the latest moves have caused a few more Retail Buyers to enter the markets.
However This actually makes a bit more sense given the critical level we are now just below at the 1.3625 mark. System ha opted for tight stops above this looking for a retest towards the 1.3500 initially but if we get further Retail Buying on a push lower we could see this start to gather momentum for a break of 1.3425.
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As ever this trade isn’t without its risks and light volume tomorrow and next weeks risk event spose some massive threats, if we also see Retail Trader continuing to sell this pair on mass it could also offer a warning sign and we would quickly switch back long.
That said it also offers a really nice risk reward if we start to see a slightly skewed head and shoulders pattern out of this pair, additionally if we start to see some US Dollar strength towards the end of the year.
Recent slowdown in the grind higher could also point to the turn, however a break above the 1.3625/1.3650 mark could negate this, so a tight stop also offers good options for protecting the short.