Close Open Orders: 2008-11-06 16:48
Close Open Orders. No trade.
A bit frustrating as the pair has moved over 600 pips lower since my post, but that’s the game. I will continue to look to short Yen crosses as traders return their focus to global recession and the credit crunch. Stay tuned!
Trade Idea: 2008-11-04 11:57
My idea is based on both a technical setup and fundamental setup, but we’ll take a look at the technicals first. I have a 4 hour chart up and using the Fibonacci tool, we can see the pair found resistance just a few trading sessions ago at the 61% Fibonacci retracement level. Will that level hold again? It may and stochastics are indicating the run up may be running out of steam as it approaches 131.00
Fundamentally, I think after the US election event, focus will return to weak economics and the upcoming rate cuts coming from the European Central Bank this week. Now, this may old news to the markets that we may see further rate cuts, but we are in a down trend and de-leveraging phase that may not be over yet, and this rally we’re currently seeing is just another opportunity for players to revisit that sentiment.
I think that 130.00 – 131.00 will be the battle ground for bulls and bears in the short term, so I think I’ll play the top of that range. I’ll be using a wide stop once again, in case volatility rises, so gonna have to gear down my position sizing. Here’s what I’m gonna do:
So, I’m going for the gusto with this one as I target just above the previous low at 115.00. If my first profit target is hit I am going to trailing my stop by 250 pips from there. Stay tuned!