Pick of the Day: EUR/CAD – Trade Closed

Trade Closed: 2008-04-25 16:20

Our trade was triggered, and after a rollercoaster ride through unrealized loss, then profit, and now back to loss, it appears there aren’t enough buyers at the trendline to support our long play. With the end of the trading quickly approaching, it looks like I’m just gonna take a hit and move on.

Close at market (1.5830) for a -70 pip/ -0.70% loss

I don’t like taking a loss, especially going into the weekend, but that’s how the game goes sometimes. I’m gonna keep an eye on this trade for any signs that buyers will support the upward channel. Stay tuned and have a great weekend!

Trade Idea: 2008-04-25 00:09

PoD Chart

I know I’m not really a “Currency Cross” guy, but I saw a nice support play forming on EUR/CAD that I’d like to share.

We have a basic support play forming on EUR/CAD as we begin to see the pair consolidate. The market is currently trading near the bottom of the consolidation pattern, and with stochastics showing the pair may be oversold, we may be in for a short term reversal.

We do have mid-level economic data later with the German Import Price Index and M3 Money Supply data for the Eurozone. This may bring us enough volatility to enter long at the support area.

I hope to get a little bit better price on the play by waiting for a little pull back lower on the pair.

Long EUR/CAD at 1.5900, stop at 1.5800, pt1 1.6000, pt2 at 1.6200

Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly!

If we hit our first profit target, then we will adjust our position accordingly and trail our stop 100 pips to our second profit target.

Stay tuned for updates and adjustments. Good luck and good trading!

  • Babysteps

    Hi,
    It’s 1.5825 ,What you suggest?Any update?
    Thanks

  • demontez

    pip,
    I saw this trade after your blog and to be honest i did not like the formation of the chart so i decide to sit on the fence and watch and i am happy i did not go for it. Have a lovely weekend, pip.

  • Babysteps

    Hi,
    It’s 1.5825 ,What you suggest?Any update?
    Thanks

  • demontez

    pip,
    I saw this trade after your blog and to be honest i did not like the formation of the chart so i decide to sit on the fence and watch and i am happy i did not go for it. Have a lovely weekend, pip.