Day Trading Eur/USD May 2-3

Euro - USD May 2-3

This trade is a simple wedge break-out. The wedge or triangle extends until about 1330 GMT when prices move up. Directly above the green arrow you will see traditional estimates of the distance the trade can be expected to travel. The red line is 100% of the wedge, and the blue line is 160%. One reasonable way to trade this is to exit in the sideways motion near the 100% target. Another approach might be to take profits on part of the position, hold the rest. Or one might re-enter when prices move back up above the moving linear regression line. Note that the bull-power/bear-power indicator moves to even during the sideways phase, and the %b drops to the mid-point line.