Trade idea background
EURUSD did not manage to take out the Asian high of 1.3623 during the European trading session, which could give scope for an exhaustive pattern to the downside, with a break below 1.3588 in intraday trading. This is, however, an intraday trade setup that still respects that the EURUSD's overall technical uptrend remains intact.
Trade management and risk description
The key calendar event risk items for the rest of the day include US factory orders and ISM non-manufacturing data. The overall risk sentiment is still hampered and influenced by the US partial government shutdown that enters its third day. We will use only half leverage in this trade setup to reduce overall risks and will protect the trade with a tight stop loss order.
Trade idea parameters
Entry: Sell half size order EURUSD stop offer at 1.3588
Stop: Buy EURUSD stop bid at 1.3607
Target: First target for the trade is at 1.3573, where we will lock in half profits and move the stop to entry. Second target for the trade is at 1.3555.
Time horizon: intraday
Short-term EURUSD
