Trade Update - EUR/USD Short

The Trade: EUR/USD Short


Reason/Setup:
I an entering this trade based on the trade idea from the Babypips website. The actual trade reasoning can be found in this link.

http://www.babypips.com/blogs/chart-art/sell_eurusd_7.html

Trade Details:

• Date Entered: April 15 2008, 10:42pm
• Entry: 1.5820
• Lots: 5
• Stop Loss: 1.5920
• Target: 1.5370

• Date Closed: April 16 2008, 2:30am
  
• Result: Pair hit stop loss.
• Total Pips: -500
• Profit/Loss: $500
• Rating: 3

Comments:
While the babypips write up talks about how the pair has been in an uptrend for quiet a while and its time for a pullback, the charts probably suggested different. It seems like there is a strong upper resistance for this pair. Its been tested three times and the pair is yet to beak it. However, its also be constantly making higher lows. This indicates that its just a matter of time before the resistance level to broken to the upside, and thats exactly what happened.

What makes this even more confusing is that Stock and RSI indicators are conversing into a narrower range. This could indicate a breakout in either direction. And in this case, the direction seem to be up.