Going Long EUR/USD! Who’s with me?!? – Trade Closed

Trade Closed: 2011-4-10 23:43

EUR/USD 1-hour Chart

I was right! My pips did come! This puts my total account balance 2.88% up year-to-date. I’m so happy!

As promised in my first post, I bought the pair at 1.4290 when a bullish divergence had materialized and when I noticed that support at the 38.2% Fib was holding. From there, it didn’t take long for my trade to hit my profit target. I went to the salon to get my hair rebonded and when I came back, voila! Profit target hit!

Closed at 1.4400 for +110 pips / +0.60%

I could have gotten more if I was a bit faster though. I should’ve have entered when the pair dipped below the 50% Fib while ECB President Jean-Claude Trichet was still speaking. Drats!

Also, I could’ve been more aggressive with my trade. I only risked 0.5% because I thought it would be safer to wait for the pair to drop further down to the 61.8% Fib level before risking the other half of my usual position. The School of Pipsology calles that strategy “Scaling.”

But then again, a win is a win, right? Overall, I’m happy with how my trade worked out. I hope y’all were able to reel in some pips on it too. Give me a holler on Twitter, Facebook, or in my comment box below if you did!

Trade Idea: 2011-4-7 1:54

EUR/USD 1-hour Chart

Isn’t there a line that goes something like, “Someday your pips will come?” Well, I think today is that day for me! Take a look at this potential Fib play on EUR/USD!

I immediately fell in love with this setup as soon I saw it on Big Pippin’s Daily Chart Art.

I zoomed in on the 1-hour time frame, and it looks like the euro is losing its momentum having been rejected at the minor psychological handle (1.4350). But since I’ve learned (the hard way!) why they say “The trend is your friend,” I’m see this as an opportunity to buy the euro at a much, much cheaper price!

So yeah, I think what we’re seeing now is nothing more than just a retracement. I’ll wait for the pair to test support at the previous week high and probably pull the trigger if bullish candlesticks materialize around the 50% and 61.8% Fibonacci retracement levels.

The fundamentals also agree with me. For one thing, inflation in the region has gone waaaaaaaaaaaaay above the European Central Bank’s mandate of 2.0%. The most recent consumer price index reported a 2.6% inflation rate! Traders are saying that the ECB will most probably hike rates in their next meeting. Interest rate hikes are usually bullish for the domestic currency.

Meanwhile, in the U.S., risk appetite seems to be picking up due to a VERY POSITIVE non-farm payrolls report last Friday. According to the forex calendar, the NFP showed that 216K jobs were created in March, much higher than the 190K initially expected. The unemployment rate also ticked down to 8.8% from 8.9%!

So there you have it folks! I’m going to buy the pair based on technicals and fundamentals. Now I’m just waiting for a pull back around the 50%-61.8% Fib levels and bullish reversal candlesticks materialize before entering. If reversal candlesticks do not appear, then I WILL NOT ENTER! I need that confirmation!

Anyone with me on this?!? Hit me up here, on Twitter, or on Facebook!

  • XbizMaster

    hello..good day. i just found this site a month ago and saw ur blogs for about a week now.. ima newbie in forex trading..and i found ur blogs very helpful…great! keep posting!, im looking for a next big ride with you..
    anyway i would like to know what charting software is that?thank you.. more power.!

  • PippinMinute

    Man it would’ve been awesome if you were still long haha. Great job dude.

  • Packygee

    I am with ya! made the order two hours ago!

  • Huck

    @Packygee Really? I think I’ll wait for some sexy reversal candlesticks first. Good luck to us!

  • yadzahav23

    i think the Euro will Fall if ECB Doesn’t Signal Follow-Through on First Rate Hike. plus we are hitting a major resis line on the weekly.

    link to s1204.photobucket.com

  • yadzahav23
  • Huck

    Neat looking chart there yadzahav23… If the ECB doesn’t raise rates, then I agree! That falling trend line will probably hold. :-s

  • Packygee

    I am with ya! made the order two hours ago!

  • Packygee

    @Huck by order i meant buy limit. at the 50% fib. hasnt triggered yet!
    and rates have been raised 1.25% just announced.

  • Huck

    @Packygee Really? I think I’ll wait for some sexy reversal candlesticks first. Good luck to us!

  • yadzahav23

    i think the Euro will Fall if ECB Doesn’t Signal Follow-Through on First Rate Hike. plus we are hitting a major resis line on the weekly.

    link to s1204.photobucket.com

  • yadzahav23
  • Huck

    Neat looking chart there yadzahav23… If the ECB doesn’t raise rates, then I agree! That falling trend line will probably hold. :-s

  • easybook

    I have the same logic and took a trade

  • Huck

    I just bought! :)

  • Enkhbat

    I just bought :) tooo

  • Huck

    Got in at 1.4290 by the way guys! I’ll do an update soon.

  • Enkhbat

    Entered in at 1.4278, pray for pips

  • Packygee

    @Huck by order i meant buy limit. at the 50% fib. hasnt triggered yet!
    and rates have been raised 1.25% just announced.

  • easybook

    I have the same logic and took a trade

  • Huck

    I just bought! :)

  • Enkhbat

    I just bought :) tooo

  • Huck

    Got in at 1.4290 by the way guys! I’ll do an update soon.

  • Londoner

    Nice, up 24 pips so far…

  • Londoner

    Nice, up 24 pips so far…

  • jjjpppjjjppp

    That was a good shot!!

  • Huck

    EUR/USD making new highs. Currently at 1.4375… Hope it reaches my pt at 1.4400! I’ll move my stop to breakeven just to make it risk-free.

    Let’s do this guys! Glad you’re all on board with me. We should all be in the green right now!

  • jjjpppjjjppp

    That was a good shot!!

  • itsariful

    nice shot. 100+ pip so far. congrats huck :) I was unable to take the boat. :(

  • Huck

    EUR/USD making new highs. Currently at 1.4375… Hope it reaches my pt at 1.4400! I’ll move my stop to breakeven just to make it risk-free.

    Let’s do this guys! Glad you’re all on board with me. We should all be in the green right now!

  • itsariful

    nice shot. 100+ pip so far. congrats huck :) I was unable to take the boat. :(

  • Huck

    @itsariful Aww, thanks! don’t worry! I’m sure you’ll catch the next one!

  • Huck

    @itsariful Aww, thanks! don’t worry! I’m sure you’ll catch the next one!

  • mnj1986

    I`m also did a same set up with you and took the profit..;)

  • Huck

    @mnj1986 awesome! where did you buy?

  • mnj1986

    I`m also did a same set up with you and took the profit..;)

  • mnj1986

    I buy at 1.4296…just different 15 pips than you…;)

  • mnj1986

    Sorry I buy at 1.4396…just different 15 pips than you…have a nice pip…;)

  • Huck

    @mnj1986 awesome! where did you buy?

  • Londoner

    Looks like it’s retracing again and I think will soon start to go back up. Anyone think different?

  • Packygee

    @Londoner id say another rebound is possible for sure.

  • mnj1986

    I buy at 1.4296…just different 15 pips than you…;)

  • mnj1986

    Sorry I buy at 1.4396…just different 15 pips than you…have a nice pip…;)

  • Londoner

    Looks like it’s retracing again and I think will soon start to go back up. Anyone think different?

  • Packygee

    @Londoner id say another rebound is possible for sure.

  • Huck

    @Londoner I am with you on that! I’ll wait for candlestick formations first before going long though!

  • easybook

    I wish i could but to many position open at this time
    Keep on trucking….
    easybook

  • Huck

    @Londoner I am with you on that! I’ll wait for candlestick formations first before going long though!

  • easybook

    I wish i could but to many position open at this time
    Keep on trucking….
    easybook