Pick of the Day: EUR/USD – Trade Closed

Trade Closed: 2007-10-04 09:45

Our short position on EUR/USD closed yesterday as the Dollar rallied on surprise strength from the ISM Non-Manufacturing data….

We reduced our risk before the event by closing half of our position to lock in 15 pips. The rest of our position closed out for +80 pips as the pair hit our second profit target on it’s way down. Hope everyone did well!

1st Half: +15 pips
2nd Half: +80 pips
Total: +95 pips

Trade Update: 2007-10-03 09:45

EUR/USD made its way up to 1.42 as hope and triggered our short entry at that level. The pair has since bounced off of that level down to 1.4180.

We have ISM Non-manufacturing data coming up at 10:00 am EDT. I would like to reduce my risk ahead of the potentially volatile report by closing half of the position at market (1.4185) to lock in some profit and adjust stop to break even.

Good luck and stay tuned for updates!

Trade Idea: 2007-10-02 23:45

PoD Chart

It was a rough day for the Euro, as it sold off against the Greenback on an announcement from the ECB may hold rates at 4%. This may continue in the near future as the Dollar looks a bit over sold and in desperate need of a correction.

It is also expected that we see a short term Dollar rally ahead of this week’s US jobs data, which is expected to show hiring growth. So, if we see a retracement back up to major level of 1.42, we will short this bay boy and see if we can catch some quick pips on a possible longer term retracement. Be careful of US data later today as we are expecting ADP jobs data and the ISM Non-manufacturing data.

Short EUR/USD at 1.4200, stop at 1.4240, pt1 at 1.4160, pt2 at 1.4120

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

Good luck!

  • sawill

    Nice call.

    Hit 4200 then started down and still headded down
    at 4132 as I type

    Daily chart looks over sold at this point,But 5 day and and 30 day are the ones to watch as futher indacators.

    Also the folks in europe are fearing that the EURO has risen to quickly which may indicate a pull bsck in the long run

  • sawill

    Nice call.

    Hit 4200 then started down and still headded down
    at 4132 as I type

    Daily chart looks over sold at this point,But 5 day and and 30 day are the ones to watch as futher indacators.

    Also the folks in europe are fearing that the EURO has risen to quickly which may indicate a pull bsck in the long run