After the exceptional volatility of the past week, a large downward channel is starting to develop. I have no predictions if it will hold, or what volatility will be over the next few days due to the ongoing U.S. financial market bailout congressional hearings. I am shorting at the top of the most recent touch of the channel down to the mid level fibble with a target of 1.4625. My Stop loss is 1.4744. I suspect that either I will be stopped out above the channel due to some whip saw candles during the European openings, or the opposite, I will get filled at my target profit. If I am awake and the trade is moving in my directions and closes below the middle fibble, I would lock in profit and extend down to 1.4577. I have a downward bias for this pair for the medium term, but am not willing to give up profits in the short term due to high volatility.
Here is the chart at my entry at 23:52 on Wednesday evening:
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