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

Close Open Orders: 2007-11-20 13:00

It looks like consolidation did lead to a breakout in EUR/USD, but unfortunately we didn’t catch it as the rallied instead of dropped as hoped for.

The Greenback sold off pretty big as soon as European markets began to open- eventually to new all time highs for the Euro. It looks like a return to risk as higher yielding and riskier assets rallied throughout the day.

Close all open orders.

So, we missed out on some pips as I didn’t have a long order ready in case the pair broke out to the upside. Just a reminder that we can’t predict what the markets will do and that we should always be prepared for anything!

Well, just one more pick for tonight as we have the US holiday this week and I will be heading home for the weekend tomorrow. Stay tuned and I’ll try to make it a good one!

Trade Idea: 2007-11-19 23:00

PoD Chart

Good evening! It appears we have consolidation this week as a symmetrical triangle appears to form in EUR/USD. Breakout anyone?

As we can see on the chart, the pair was unable to break past the 1.4730 – 1.4750 price area as it has touch 3 times and bounced lower. It also appears that the pair is making lower highs indicating we may see a reversal to the downside. And while stochastics are not in overbought territory, they may be turning lower.

So, based on price action, I will look to sell if the pair breaks below the uptrend line drawn on the chart, and I will target previous lows.

Short EUR/USD at 1.4610, stop at 1.4695, pt1 at 1.4580, pt2 at 1.4520

We have a wide stop in place. Remember to never risk more than 1% of your account on any single trade. Please adjust position sizes accordingly.

If the pair does make it to our second profit target, we will adjust stop to pt1 instead of closing out the trade.

We do have US housing data tomorrow, so stay tuned for updates and trade adjustments. Good luck and good trading!

8 comments

  1. jibby03

    Yea a breakout was definetly going to happen here but what you should have done was placed entry orders below your support and above your resistance, then you could have rode this trend in either direction. Looks like you may have lost a few pips here.(not trying to be rude or anything)

    Reply
  2. hendrikone

    That’s a good comment “jibby”, also the main trend is UP, always trade with the prevailing trend, and as it turned out, the breakout by today was about 50 pips to the UPside!!
    This is my first comment, I am new and just signed up. Good trading everyone

    Reply
  3. jibby03

    Yea a breakout was definetly going to happen here but what you should have done was placed entry orders below your support and above your resistance, then you could have rode this trend in either direction. Looks like you may have lost a few pips here.(not trying to be rude or anything)

    Reply
  4. jibby03

    actually hendrikone this is a symmetrical triangle where the “highs” are getting lower and the “lows” are getting higher. Its almost like a tie b/w buyers and sellers thats why its always good to make entry orders on both sides, so it doesnt really matter which side the breakthrough occurs on as long as it occurs. Also welcome to babypips hendrikone. Happy trading

    Reply
  5. hendrikone

    That’s a good comment “jibby”, also the main trend is UP, always trade with the prevailing trend, and as it turned out, the breakout by today was about 50 pips to the UPside!!
    This is my first comment, I am new and just signed up. Good trading everyone

    Reply
  6. jibby03

    actually hendrikone this is a symmetrical triangle where the “highs” are getting lower and the “lows” are getting higher. Its almost like a tie b/w buyers and sellers thats why its always good to make entry orders on both sides, so it doesnt really matter which side the breakthrough occurs on as long as it occurs. Also welcome to babypips hendrikone. Happy trading

    Reply
  7. sharkie

    i’m getting this trade idea late.. it’s 21-11-2007 in my country what is the time zone for your post??
    someone help me on this!!!

    Reply
  8. sharkie

    i’m getting this trade idea late.. it’s 21-11-2007 in my country what is the time zone for your post??
    someone help me on this!!!

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>