Trade Closed: 2010-11-1 22:00
After my first profit target was hit, it seemed like the bulls were running out of steam. When the pair started falling, I decided to close my remaining position.
First pt hit at 1.3950: +147 pips
Second position manually closed at 1.3842: +39 pips
What’s my next trade going to be? With the amount of high-profile economic data coming out today, I’m not sure if putting on a swing trade is a good idea. I think I’ll wait for the Fed’s decision on interest rates and QE before deciding on a directional bias…
Trade Idea: 2010-10-27 4:50
Fundamentally, I still do believe that the focus remains on the Fed’s second round of QE and that this move down we are seeing in EUR/USD is simply a massive retracement of the overall trend. Eventually, bulls will buy it back up and take it to new highs… hopefully!
There’s also the poor results of the S&P Case-Shiller home price index. It showed that that house prices only increased 1% year-on-year, more than half the 2.1% reading initially expected. I think the weak housing market is a very strong indication that U.S. isn’t doing too hot!
On the technical side of things, there seems to be a horizontal channel in EUR/USD’s 4-hour chart with support at the 1.3800 psychological stand. While I was looking at the chart I was soooo tempted to short when the red candle sported a long lower shadow.
Good thing I decided to be a good girl and waited for the candle to close! The support at my entry backed up the oversold region of Stochastic so I jumped in and shorted at market. I’m keeping my fingers crossed on this one!
I set my first profit target at the middle of the range at 1.3950, while my second profit level is at the top of the channel at 1.4100. I plan on pulling the plug if the pair goes below the previous low at 1.3645.
That’s it for today. You can also follow me on MeetPips.com!