Buy – 1.05675
Stop – 1.05425 (raise to break even on L1)
L1 – 1.05925
L2 – 1.06100
UC – Breakout entry placed above 1.065 resistance. Positives include wicks that have been horizontal in their display of resistance, RSI shows a definite uptrend. Price action is an up channel / uptrend. Low volatility allows for a tight 25 pip stop which is still below large round # of 1.050. Resistance was tested about 12 hours ago and held strongly, but bears were not able to lower the price much.
Negatives include an RSI that is near 70 and would surely break 70 if the pair rises. Also that the pair has shown that the bears were able to fight it down to the bottom of the flagpole previously.
UPDATE: 7:56a GMT 5-15-08. Trade has been close for a 25 pip profit. First target was reached. Stop on second lot was raised to break even and then tripped on.
Trade closed. 25 pips profit. Second lot stopped out at break even.