Wednesday, April 29, 2009
EUR/USD Looks Like Great Risk/Reward on the Short Side; April 29, 2009
The EUR/USD rallied hard recently but after the Fed announcement we see a reversal of possible big proportions forming on the 15min chart. You can see the RSI at the bottom formed a support shelf during the recent rally but after the decline following the Fed news it has since broken down below that shelf, and so far is staying there, indicating that this currency pair is breaking down and may to a huge "after-news-reversal".
The risk/reward is too good to pass up, so I'm short at 1.3300 with a stop at 1.3350. My target is a possible new low beneath 1.2960! So I'm risking 50 pips to possibly make over 1000! See what I mean about risk/reward?