EUR/USD short

8 Nov 2017

The market is currently downtrending on the daily timeframe as indicated by the red trend line. Looking on the 4 hour chart, we see that the pair has moved into consolidation indicating a potential retracement to the upside before continuing on its path downwards. Therefore, I've opened a short position where I believe the market may see bearish pressure and could rally down. Stops are placed high due to the risk of the market going up to retest the daily trend line (as so not to get stopped out). In addition, profits are placed conservatively at the beginning of a potential future support level.