Trade Idea: 2012-03-15 23:30
As expected, we saw some volatility with all the data that came out. The euro was a little weaker across the board, which helped EUR/GBP dip a little lower. Unfortunately, it wasn’t enough to get me triggered! The .8300 handle and the bottom WATR held like champs, and price just bounced from that area!
In hindsight, I may have been a little too conservative with my entry. I probably should have just set my orders at .8300 and be contented with a slightly wider stop and lower reward-to-risk ratio.
With the weekend just around the corner, I think I’m just gonna cancel my orders and lay low. Besides, I did bag some pips on my EUR/CHF trade, so this week wasn’t a total bust.
Thanks for following me and see y’all next week, homies!
Trade Idea: 2012-03-14 02:00
One reason I love trading support and resistance levels is because they are pretty clear on the charts. A perfect example of this is the support level that EUR/GBP has been trading on over the past 10 weeks.
Sentiment also seems to be picking up now, as participation in the PSI Greek Debt Swap was much higher than anticipated. In addition, the Fed’s acknowledgement of the U.S.’s improving labor market was consistent with their new stance that additional quantitative easing measures may not be needed. I think this could boost risk-taking over the next couple of days and give the euro a nice push as well.
While Stochastic is already showing oversold conditions, I feel more comfortable waiting for price to retest the support zone first. I’ve set my buy order at .8290, with my stop just past the February 6 low. As my for my profit target, I’ll be aiming for .8400, which has been a major area of interest this year as well.
As for economic reports, we’ve got euro zone inflation and industrial production figures, as well as the U.K. unemployment figures on tap today. I’m hoping that these second tier reports provide enough volatility in the markets to help me get triggered.
Of course, there’s no telling what may happen in the markets and that’s why it’s important to keep my risk in check. With that said, I’ll be risking just 1% of my account on this trade.
Hope this trade works out nicely for me. Good luck to those of you who are willing to join me on this trade!
Weekly Watch: March 12 to 16, 2012
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