Pick of the Day: EUR/USD – Trade Closed

Trade Closed: 2007-08-15 23:10

Our trade reaches the second profit target as the Dollar marches on…

Risk aversion continues today as expected and the Dollar rallies against enough to close out the second half of our trade at 1.3430. Awesome!

1st half: +41 pips
2nd half: +86 pips
Total: +127 pips

Trade Update: 2007-08-15 10:00

We saw more volatility and flight to safety in the Asia/European trading session as the Greenback continues to rally.

Our trade hit the first profit target right after the start of the European/US trading session and we closed out half of our trade to lock in approximately 40 pips. The stop has been adjusted to breakeven to create a risk free trade. We will hold and let it ride!

Good luck!

Trade Idea: 2007-08-14 23:44

PoD Chart

We have a nice and easy trade idea today with EUR/USD. As we can see on the chart, we have some downtrending action in the pair, and hopefully tomorrow’s US CPI data will help push the Dollar up further.

We will enter at the market price, target the red bollinger band (2 standard deviations), and our stop will be 85 pips (average daily pip range). Today’s better than expected PPI data may be a leading indicator of CPI’s data, and we may see higher than expected consumer prices.

Again, we have a wider than usual stop, so reduce your position sizes to keep within our normal 1% account risk rule. Here’s our trade:

Short EUR/USD at market 1.3516, stop at 1.3600, pt1 at 1.3475, pt2 at 1.3430

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

Good luck and good trading!