EUR/USD shorts

I’ve had a decent start to the week since initiating a sell of EUR/USD at 1.2054.  The Euro has since traded as low as 1.2002 for a 40+ pip increase.   I stuck with the trend which has been downward and favorable towards the dollar.  I based a lot of my trade on the daily technicals shown.

With the understanding that there should be a tight trading range this week, I sold the EUR/USD at what I see as a high in regards to the upper trend line.   The lower trend line is at 1.1925 so I can see the price touching this line in the near future.  If the rules of a right triangle apply here, there could be a breakout to the downside coming.  Another part of my reasoning for selling was the continued favorable corporate earnings reports in the US and the bullish sentiment in the continued raising of interest rates.  Last week, I also expected the CFTC report to show the EURO gaining in net longs but this didn’t happen as the EURO showed a loss of over 4000 non-commercial net long open positions and only a loss of 1031 non-commercial net short open positions.

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