It looks like short-covering is a bit overdue in EUR/USD. Any fast break above the triple top at 1.2585 should easily take us to the mid 1.27s. But the fun will start up there. Stops will really kick in if the Euro breaks above 1.2750 by more than a few points. As a low-risk trader, we should wait for such an event and place our carefully chosen sell order somewhere near 1.2940. (This level will change if the Euro doesnt get to our sell level by London noon time tomorrow). Our stops need not be to far away, lets agree on 15 pips. If it works out, then we should be richer by about 200 pips. That’s a nice juicy risk-reward ratio, but don’t get emotional now! Only money in the bank is real money. We could still end up losing those 15 pips, but unless we are willing to take SOME chance, we should not even be in the trading game. Enjoy! Ramki
EURO could trigger a round of short covering
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