Euro Update

Earlier this morning I posted on a number of things, including a current EUR/USD short position that I'm holding.  I got a comment from someone asking what my take profit target is for this play, and since I can't post charts in the "comments" section of the blog, I'm providing this update. 

Below is an updated daily chart, and you'll see where I've added a fibonacci retracement grid to the run-up that began in September.  We've been hovering around the 38% retracement for the past few trading days, and my initial thought when re-entering a short position here was to target the 50% retracement level, which would net me another 300 pips in profit. 

As can be seen in the above, we'll probably see some central bank buying to defend the intermediate lows put in last Friday at 1.3573, but once we break through this level, we should see 1.35 and below in quick time. 

Below is the same, but on a 5 minute scale, highlighting the action from today.  As you can see, 1.3580 saw some buying to put a temporary halt to the sell-off that began 2 hours ago.  I'm not sure how aggressive this buying will be, so have moved my stops now to 1.3650, just in case the ECB is feeling froggy and wants to jam the shorts. 

I'll update more later if I see any significant changes.