The EUR/USD pair has been trading in about a 60 pip channel since yesterday mid-day EDT. This type of tight range is usually an indication of an imminent break out. I'll buy on a close above or below the defining channel lines as indicated on the chart to the right. I'll move to break even if the pair gets to +50 pips and then likely put a trailing stop on (I favor a 20 pip stop in this type of trade. Initial stop will be the other side of the channel. If the pair breaks up, the profit target will be the 800 sma. If it breaks lower, the pair will probably run into support at about the 1.2900 level, but could break through and if it does might fall as low as 1.2400 before finding any substantive support. I'll keep you posted as things develop.Happy Trading!
