Trade Closed: 2010-10-12 22:27
You win some, you lose some! As you all probably know by now, the FOMC minutes did NOT help my trade and was even detrimental…
The minutes revealed that the Fed will take appropriate action soon (that’s quantitative easing!) and provide additional accommodation if needed. This sent traders scurrying away from the dollar.
I’m not feeling bummed out at all. I’ve had my fair share of winning trades recently, and I know the losing is part of the game. Hopefully, my next trade will be a winner!
Trade Idea: 2010-10-12 3:19
Hey y’all! Did you miss lil’ ol’ me? I was in the salon getting my hair and nails done for a date later when I saw Big Pippin‘s Chart Art on my phone. Right then, I knew two things are gonna happen today!
First is that I’m gonna wow my date with my new, sexy layered hairstyle. And second, I’m going to sell EUR/USD.
Just look at those double top and the pair breaking below support at the bottom of the ascending channel! I’m thinking of playing the break by entering below the neckline, where the pair seems to be chilling out now, at 1.3815.
I have a feeling that EUR/USD may still go for another hustle with stochastic indicating that it’s oversold. I don’t wanna break any of my French-tipped nails stressing about being caught in a bull run by playing the bounce.
I’m keeping my fingers crossed that the minutes of the most recent FOMC meeting will reel me in some pips.
Don’t get me wrong. I’m not exactly optimistic about the US economy. I just think that maybe the report will show that the Fed’s decision on launching QE2 still isn’t set in stone.
I mean it was just yesterday that we heard Kansas Fed Reserve President Thomas Hoenig and Vice Chairman of the Federal Reserve Board of Governors Janet Yellen talk about how further stimulus could be bad for the economy too.
Who knows? They could have convinced a few more members of the FOMC to side with them that quantitative easing ain’t the way to go. Or at least not yet.
Anyway, I plan on taking profit at 1.3650, where EUR/USD has previously found support. I used a volatility stop for my stop loss. Since the pair’s average true range for the day is equal to 140 pips, I placed my stop loss order at 1.3955.
Short EUR/USD 1.3815, pt at 1.3650, sl at 1.3955.
Wish me luck (on both my trade and my date)! Oh, and don’t forget to follow me on Meetpips.com!