Bounce, Bounce, EURUSD? – Closed Trade

Trade Closed: 2010-01-08 1:35:15

PoD Chart

Like I promised, I’d close my trade before the release of the US non-farm payrolls report. Although it seems like the EURUSD broke down from its consolidation, I wouldn’t want the extra volatility to wipe out my recent gains. Yesterday, I closed half of my trade at 1.4351 and today I closed the rest of my trade at 1.4315. It’s about time I locked in those profits before I head off to enjoy the weekend!

1st half: +99 pips
2nd half: +135 pips
Total: 1.17% gain

Trade Update: 2010-01-06 21:55:14

Good day everyone! Only one week to go before American Idol Season 9 kicks off… I can’t wait! But let’s talk about my open EURUSD short trade first…

As much as I’d like to let my profits run, I think I have to adjust my position a little bit as the ADP non-farm employment change is coming up tomorrow. Apparently, only 74K net job losses are expected for December which, in my opinion, is a very significant improvement over the 169K net non-farm jobs lost in the previous month. The release of the actual figure could lead to some volatility in the EURUSD pair and mess up my make up… Oh, I meant my trade! With that said I’ll lock my profits in one position and, at the same time, move my stop to my entry point on the other.

Trade Idea: 2010-01-05 21:53

PoD Chart

As you can see from the chart above, the fiber (EURUSD) attempted to move past the resistance near the 1.4450 price area at least three times during the past 3 trading days. However, resistance held firmly each time. Will we see another retest today? It seems that the pair is consolidating at the moment so I might be able to get a better price and enter a short trade later on today.

There are a couple of economic data coming out this week but I suspect traders will be holding out on putting any huge positions on the table ahead of the non-farm payrolls report on Friday. Because of this, I suspect major support and resistance levels will continue to hold. Also, seeing as how risk appetite revisited the markets yesterday, better-than-expected results from the pending home sales, ISM non-manufacturing and ADP non-farm employment change could help me get a better entry price. To avoid event risk, I’ll be sure to close any open orders and/or positions ahead of the NFP report on Friday.

As usual, I will risk 1% of my account on this trade. My plan is to:

Short at 1.4450, stop loss at 1.4550, take profit at 1.4280 and 1.4180

  • ekele4rex

    am just buckling ma shoes. plans like urs makes things LOOK easy. I wish u luck.

  • ekele4rex

    am just buckling ma shoes. plans like urs makes things LOOK easy. I wish u luck.

  • Huck

    Thank you ekele4rex. We’ll just have to see if the pair keeps its range. :)

  • Huck

    Thank you ekele4rex. We’ll just have to see if the pair keeps its range. :)