Trade Closed: 2008-06-09 00:17
Nice way to start off the week as our trade closes shortly after trading begins in Asia as our short position hits our second profit target.
1st Half: +50 pips
2nd Half: +150 pips
Total: +2.0% gain
Trade Update: 2008-06-06 12:09
What a morning for currency markets and our trade! We were triggered to go short at 1.6200 during the morning European trading session, and it looks like the weak US employment data brought risk aversion back as traders sell off in riskier plays such as equities and carry trades.
It looks like the market has stalled at 1.61, and we’ll probably see some profit taking as we approach the end of the week. I’m sticking around on this trade, so stay tuned for updates! Good luck!
Trade Idea: 2008-06-05 15:33
On the chart, we can see the pair trending lower from a recent high around 1.6340, and on the Euro strength, the pair is currently heading back towards the trendline drawn on the chart. Using the Fibonacci tool, we can also see the pair approaching the 61% Fibonnaci retracement area, which happens to line up with 1.6200 on the dot. Lastly, stochastics are indicating the pairs’ rally may be just a bit tired.
Fundamentally, traders are now pricing in the possible rate hike for the Euro next month, but because of the intermarket relationship of risk aversion and appetite that this pair moves in, I am short biased as I think we risk aversion will continue to prevail as an overall theme for a while.
So, while interest rate sentiment is strong, we have have several technical reasons traders would take a look at the approaching area for resistance and possible short term reversal back to the downside. Let’s go with that idea…shall we?
Stay tuned and good luck!