EURUSD Nice correction from our sell signal observation at 1.3920 on March 7th, it is always nice to lock in profit by taking 70% of the position out here and keep the rest as a freebee with a stop at 1.3980 when option protection at 1.40 runs out. As Warren Buffet says, one never get poor by taking profits
INITIAL OBSERVATION
The EURUSD is making new highs since Nov 2011 and with a close here we have broken the falling trend since 2007. We are testing the upper level in the rising range trading channel that initiated in 2012 so this is a critical level.
Indicators are showing that there is still room for a further rise, again with new highs but lower highs in the Oscillators indicates that it might be a false break up, the very bold trader would look to go short soon with option protection above 1.40 level. We would recommend using regular stop losses a we could see a brief rally to take out the stop losses before the anticipated correction.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
