About Pick of the Day

Each day, I will try to find what I believe is the best looking short term trade setup for the upcoming trading day or week. If you're a forex newbie, it can be tricky in the beginning trying to figure out how to look at charts and draw lines. My goal is help you understand the psychology of price movements so you can learn to analyze your own charts and trade on your very own. I will post my ideas and/or reviews through out each session right here, on Twitter and on Facebook.

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May 2006

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Pick of the Day: EUR/JPY

Posted 22:53 31 May 2006 | Comments

As I stated a couple picks earlier, I would keep an eye for a short trade on this pair. It looks like it's going to close below the trendline drawn. It has also made a few attempts to break the 144.44 price level, but no luck. EUR/JPY has already started another move down, so now maybe a good time to short this pair. The only concern I have is E-12 quarterly GDP being released at 5:00 am EST. The consensus number has increased to 2.0%, reflecting the economic growth in the Euro zone. Inflation concerns are on the rise, which means possible interest rate hikes for the euro in the near future. I have prepared a long trade idea in case we see a surge in the euro.

Long EUR/JPY at 144.59, stop at 144.19, pt1 at 144.72, pt2 at 145.00

Short EUR/JPY at 143.68, stop at 144.10, pt1 at 143.51, pt2 at 143.24

Good luck and good trading!

P.S. Don't forget to check out Big Pippin's and Pipcrawler's new signal blogs!