Pick of the Day: EUR/USD – Trade Closed

Trade Closed: 2007-10-19 09:40

EUR/USD broke out of its range yesterday as the Dollar sold off against the majors.

The brought our position out to our stop out point for a loss of -70 pips

We have the G-7 meeting coming up this weekend which may create strong reaction in the currency markets. Short term speculators will probably close positions ahead of the meeting to reduce risk ahead of this event.

Please be cautious ahead of this event and have a great weekend!

Trade Idea: 2007-10-17 23:30

PoD Chart

It looks like the majors are in rangebound mode this week with mixed US data (stronger CPI and weaker Housing data) and as we approach the G-7 meeting this weekend.

We will play the ranging scenario with the EUR/USD and it looks like we have an opportunity coming quick as the pair approaches an area of strong resistance around 1.4240. Stochastics approaching overbought territory, indicating we may see the pair lose steam around the top of the range.

We will short at the top of the range and our max target will be the bottom of the range as drawn on the chart.

Short EUR/USD at 1.4240, stop at 1.4310, pt1 at 1.4210, pt2 at 1.4160

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

We have Eurozone Trade Balance, US Unemployment Claims, and Philly Fed Index as potential market movers tomorrow. Please be cautious during those events. Stay tuned for updates and possible trade adjustments. Good luck!

  • havenoidea

    great i went opposite direction and got me few pips

    [URL=http://img144.imageshack.us/my.php?image=netna7.jpg][IMG]http://img144.imageshack.us/img144/8891/netna7.th.jpg[/IMG][/URL]

  • havenoidea

    great i went opposite direction and got me few pips

    [URL=http://img144.imageshack.us/my.php?image=netna7.jpg][IMG]http://img144.imageshack.us/img144/8891/netna7.th.jpg[/IMG][/URL]

  • Pipcrawler

    Great! Glad I can help haha :)

  • Pipcrawler

    Great! Glad I can help haha :)