Giving EUR/USD Another Shot

Giving EUR/USD (Another Shot)

I'm giving EUR/USD another shot today. But hopefully, unlike my trade idea last week, I won't miss the move with this day trade setup.

On the 15-minute chart, we see that the pair is just consolidating between 1.2600 and 1.2550. In fact, you can even say that there is a bearish pennant in the making. I learned from the awesome School of Pipsology that this chart pattern usually signals that the pair is about to breakout lower so I will wait for price to pierce through the support at the rising trend line.

I think selling around 1.2550 and aiming for the 1.2500 handle with a 50-pip stop is a good idea. But as usual, I won't pull the trigger nor will I set an order until I see the fundamentals align with my trade idea.

Since this is a day trade, I'm mostly concerned with the economic reports coming out rather than the entire macroeconomic picture. Specifically, I'm keeping a close eye on the purchasing managers' indices that are scheduled to come out later. If those reports fail to meet expectations, I suspect the euro will get sold-off again.

With that said, here's my game plan:

Short EUR/USD at market when PMIs come in worse than expected, stop loss at 1.2605, profit target yet to be determined.