An upward crossover, stochastics moving up, and 30-pip filter hit… Why, that’s a valid HLHB signal there! The crossover took place on the first of September while the stochastics were still climbing towards the overbought area. Based on the rules of my HLHB mechanical system, all I had to do was wait for the next candle to form and reach my 30-pip filter.
Lo and behold, the zoomed up and I was able to enter a long position at 1.2848. The buying frenzy seemed to die down from there but no worries! My stop is located far away, at ten pips below the crossover candle or 1.2685 to be exact.
Hopefully EURUSD rises all the way up to my first profit target at 1.2998. Oooh, that’s just a couple of pips shy of the psychological 1.3000 handle. Wheeee! Can you feel my excitement? Now I’m having a tough time telling which is more exciting: my HLHB trade or the upcoming season 2 of Glee. Two more weeks to go!
Looking at the past week, what a topsy-turvy one it has been! One day the dollar is gaining against the euro, the next day it’s just getting slaughtered. We saw this kind of price action this week when EUR/USD had fallen on Monday and Tuesday before staging an awesome mid-week reversal on Wednesday.
Could this be because investors and traders are uncertain what the upcoming NFP report will bring? The ADP report came in below expectations, hinting that the NFP report could also follow suit. On the one hand, this could inspire risk aversion among traders and put the dollar on a pedestal again. But on the other hand, traders might be so sick of the US’s poor fundamentals that they might just choose to dump it instead!