Is the EUR currency at the top? And How to Play it?

Hell, take a look at the Commitment of Traders Report, speculators aren't even close to being overly long.

 

I short the EUR/USD over the last couple of hours, and it is moving in my favor. I keep tight stops securing small gains, and I do not want it to get me out. But I am watching it like a hawk. I do not care what Trichet says. The charts tells me all I need. The only time Trichet can get me is when the market is closed during the weekend, and the market gaps. I will not maintain a position during the weekend while we are at an all time high.

I am thinking I may have a case here as it seems to me that the majority are bullish this pair when it is an all time high. For a true top to form one needs a majority of people to hold the bag. An all time high is a great price and time to have a large number of bagholders.

Spin summarized well how I am playing it (Spin: nice seeing again buddy. How are you doing?).

 

well, what is your logic for fading such a strong upmove?

 

I shorted it at 1.5844 area. So i am up 24 pips so far. So why should I doubt trade?

 

Looks like spoo wants higher, which means yen should want lower...looks like yen might get to 93ish in the next few weeks...

 

cause you are picking up nickels in front of a freight train.

 

with no apparent strategy unless "its just gone too far,"

 

no offense intended, I'm just curious why. I bet its at a new record by the end of the week if not by tomorrow's NY open.

 

Because the charts speak. They said the top at 1 minutes was formed, I shorted. They then said the same on 5 minutes, so I shorted. They repeated the same answer for 15 minutes, and I gave the same reaction.

Understand that a top starts first at 1 minutes, and then follows on other time frames. I timed my entry. If I am wrong, I will get out with 5 pips profit. If I am right, I will keep it.

 

Cool, good luck.