This comes from a professional trader based in Singapore, who we will call Mam. He is 100% technical and has a proprietary system which works off overbought and oversold indicators.
His model has the EUR/USD heavily oversold on a 4-hourly basis. This fact allied with strong chart support at 1.2625, might be enough to encourage a strong short-covering rally but he will not jump into the market, preferring to trust the bear trend and wait for a final dip.
He has buy orders at 1.2660 with s/l at 1.2590 and a t/p target at 1.2950, a risk/reward ratio of 70/290. This is the first time I’ve seen one of his trades, so let’s see how useful his model is?
