Whoa! This week was probably the best one for the HLHB Trend-Catcher yet. The system had 3 winning trades and filtered out all the bad ones!
Here’s a brief summary of the signals that materialized:
- Short at 1.3234. Trailing stop triggered at 1.3128. +106 pips
- Invalid signal since RSI did not crossover the 50 level.
- Short at 1.3129. Trailing stop triggered at 1.3101. +28 pips
- Another invalid signal since RSI did not crossover the 50 level.
- Last invalid signal for the week since RSI was already below 50 when it the EMAs crossover to the downside.
- Long at 1.3053. Trailing stop triggered at 1.3070. +17 pips
Of course, it helped a lot that the dollar rallied across the board this week. Well actually, it seems to me that it started last week when the NFP report for February came in better than expected and had market participants excited about the recovery of the U.S. economy.
Heck, even the Fed couldn’t ignore the recent economic improvements! In the most recent FOMC statement, the central bank hinted that QE3 may not happen anytime soon.
Although a buy signal materialized in my system, in my humble opinion, I don’t think the dollar rally is already over. But I do believe that before it resumes, we’re gonna see a pullback. This is why I bought EUR/USD at 1.3050 yesterday.
That’s just me though. What do you guys think? Is this a reversal we’re seeing on EUR/USD or is it nothing more than just a pull back?