EURUSD: Trading Based on Fibs – Close Open Orders

Close Open Orders: 2010-10-4 22:26

As I’ve pointed out to one of my readers, while I did get the direction right, my limit order was missed by 9 pips. I’m not really feeling bummed about it because I know that there will be other trading setups for me to take.

I’ll keep this one short for now, as I’ve been very busy at work lately. There’s a new manager at the place at I am working and he keeps asking me to make these daily sales reports. *Groan* That’s his job! I’m just a barista… Bah, I guess I have to do what I am told – I don’t want to lose my job!

Trade Idea: 2010-9-30 2:06

PoD Chart

Hey guys, how have you been doing?

After letting a possible winner slip through my fingers in my last USDJPY trade, I’m itching to get back on the horse. I’ve been thinking of switching sides on the USD since it’s been really weak lately. Now, I’m going to sell it in favor of the euro. I think momentum is still on the euro’s side especially since the latest confidence reports have been positive for the region. Even German Chancellor Angela Merkel is feeling optimistic! You go, girl!

We might see big moves on the pair since a couple announcements from Ireland and Spain are due today. Ireland’s supposed to reveal how much it’ll cost to bail out the Anglo Irish Bank while Spain’s getting ready to vote for its 2011 austerity budget.

I’m also keeping an eye out for U.S. data. According to the economic calendar, the Chicago PMI, the initial jobless claims, and the third and final version of the GDP will come out later today. If these reports come in better than expected and I am triggered, we could see EUR/USD pop higher.

Using the Fibonacci tool, I’ve decided to put limit orders around the 38.2% level at 1.3550. With stochastic about to hit oversold territory, I think there is a high chance that the pair will swing higher.

I will put 1% risk on the table, with a 130 pip stop (equal to the pair’s average true range). The profit target on my first position targets former highs at 1.3650, while the profit target on my second position is yet to be determined. That way, I can make sure that I do not miss the wave in case of an upside break!

Long EUR/USD at 1.3550, pt1 at 1.3650, pt2 yet to be determined, sl at 1.3420. The combined risk of both my positions is 1%.

Is this a good idea? I think it is! Let’s see how it pans out. You can also hit me up at MeetPips.com.

  • leelar

    Hello there,

    GU never hit 1.3550, at least not yet, did you enter with different entry price?

    Just trying to understand the logic.

    Thanks

  • Buckscoder

    Merkel is a talking head who learned agitprop in the former GDR. She will always be optimistic. Don’t overevaluate that, lol.

  • leelar

    Hello there,

    GU never hit 1.3550, at least not yet, did you enter with different entry price?

    Just trying to understand the logic.

    Thanks

  • Buckscoder

    Merkel is a talking head who learned agitprop in the former GDR. She will always be optimistic. Don’t overevaluate that, lol.

  • Huck

    @leelar Sadly, EUR/USD missed my desired entry point by 9 pips! I follow my plan to the bone, as it usually saves me more than I miss a trade. A bit frustrating, but it’s okay. There will be other opportunities! :)

  • Huck

    @leelar Sadly, EUR/USD missed my desired entry point by 9 pips! I follow my plan to the bone, as it usually saves me more than I miss a trade. A bit frustrating, but it’s okay. There will be other opportunities! :)