Pick of the Day: EUR/USD – Close Open Orders

Close Open Orders: 2007-09-19 21:30

Looks like we missed out on our trade as EUR/USD came within 6 – 7 pips of our buy order before rallying up….

Price action suggests we may still see the correction but I would like to hold of entering for now to see how far of a correction we may see.

Close open orders to buy EUR/USD. No trade.

Trade Idea: 2007-09-19 03:20

PoD Chart

Good Morning! We saw a rush to sell Greenbacks yesterday after the FOMC cut rates by 50 basis points. The selling has stopped for the moment, but will it resume and where do we get in?

EUR/USD may provide us an opportunity to get in at a great price! As we can see on the chart, the pair broke through a resistance level after the rate decision yesterday before running out of steam and stalling. This resistance may have turned into support which has lined up nicely with the 38% Fibonacci retracement level of the latest swing move from 1.3828 to 1.3988. Stochastics are also showing the EUR/USD rally is tired and that we may see the pair retrace from this point.

We do have US CPI later today. This may be another volatile event for the markets today, especially if we do see a drop in inflation to support yesterdays rate cuts.

So, we will look to jump in at the 38% Fibonacci area if the pair retraces from its all time highs.

Long EUR/USD at 1.3928, stop at 1.3878, pt1 at 1.3948, pt2 at 1.3980

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

Good luck and good trading!

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