The Long EURUSD and the short SPX of it

The Long EURUSD and/or Short S&P 500 (SPX) position I've been eyeing for a month or so finally started to work last week and I managed to take back from the markets with a short SPX part of what I gave before because of bad market timing (once again!). The chart below shows the performance of a long EURUSD-Short SPX position, adjusted to match their daily volatility during July while so far, I've been trading one side or the other but not both.

Actually last week I was waiting for the right time to enter a long EURUSD position as there was a big battle around the 1.30-level and finally I shorted the SPX at around 1115 for a 1-ATR profit (a "quickie" trade)taken at around 1095. I chose the swing trade (fading the increase of the SPX) rather than the momentum one (playing the strength of the EURUSD) on technical considerations : my guess was that the 200-SMA and 50% Fibonacci retracement of the SPX would act as a strong resistance and even if they were to break in a close future, there would be at least a correction (if not a reversal) and there was room for a short term profit of 1-ATR (if the correction had some steam, I could always re-enter the short with a bigger size). On another side, my bet was that while the SPX hasn't cleared these obstacles, the EURUSD would struggle to clear break frankly the 1.30 and then more importantly the 38.2 Fibonacci Retracement. It looks like I got it not that bad that time.

But today as I'm writing, it looks like the resistances are being broken and this with the strength soooo typical of stop gunning (that smell of powder is pretty recognizable) : the SPX is around 1122 and the EURUSD close to 1.3170. It means the time for me to enter a long EURUSD may be very close, the only thing holding me back is I want to see how the SPX reacts after the break of those resistances, I think that at those levels, fake outs are very likely. This said, a strong advocate for a long EURUSD is definitely the RSI at 72 : buy the overbought and taking money from the gunned guys is one of my favourite play. Not sure how long I can resist the temptation.

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FYI As this post is published: SPX 1120 // SX5E 2817 // NKY 9570 // DAX : 6288 // EURUSD 1.3170 // USDJPY 86.42 // XAUUSD : 1185