Top Trade Idea for September 6th, 2013 – EUR/USD

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The EUR/USD daily chart shows a clear downtrend. There’s potential for a strong read on non-farm payrolls tonight to drive further USD strength, and another leg down for EUR/USD. Leaning on the daily trend, traders may turn to the hourly chart for an entry signal.




Note the “evening star” type formation (red arrow). EUR/USD tried to get off the floor, but this formation points to selling interest just above the current market. I’m setting up 2 trades here: Trade 1 – Stop entry sell at 1.3110 (below today’s support), stop loss 1.3141 (above the star) Trade 2 – Limit sell at 1.3178, stop loss 1.3228 (above last night’s peak) The second trade is a “just in case”. If the buyers get control in the lead up to the number I want to take advantage of any spike. Of course, if trade 1 has already triggered, it will hit the stop before trade 2 is triggered. In a best case sceio, trade 2 is triggered first, and the market reverts back through 1.3110, making me doubly short in a falling market.