Pick of the Day: EUR/USD -Trade Update

Trade Update: 2007-02-28 08:20

During the Euro session, EUR/USD came down to about 1.3180 before reversing and shooting back up to about 1.3215. We have US GDP coming up at 08:30 EST, so to avoid event risk we will remove all open orders. Stay tuned for any trade ideas after the GDP report.

Trade Idea: 2007-02-27 23:30

PCPOD.ff.png

EUR/USD has been in rally mode, and now it’s seeing a correction as the US Dollar gained against many of the majors today. I think this would be a great opportunity to jump into the Euro against the Dollar, especially with market’s expectations on upcoming US data (US GDP, Chicago PMI, and New Home Sales) on the weakside. Right now, there’s a bullish sentiment on the Greenback, so we will wait for EUR/USD to move down a little more, before we go back in long.

Using the Fibonacci Retracement tool, we can see that we may see support of EUR/USD around 1.3150 to 1.3190. We will scale into a long position, with a stop below the 61% Fibonacci Retracement line.

Long half position EUR/USD at 1.3175, stop at 1.3135, pt at 1.3215

Long half position EUR/USD at 1.3155, stop at 1.3135, pt at 1.3195

Remember to never risk more than 1% of your account on any single trade, so please adjust your position sizes accordingly.

Good luck and good trading!