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

Close Open Orders: 2008-01-08 09:49

Our orders were not triggered yet and with US pending home sales data coming out in a few minutes I would like to get out of the way of event risk by closing our open orders.

Close orders to short EUR/USD at 1.4750

I have a feeling we will see disappoint data once again from the housing sector and with EUR/USD in ranging mode most of the day, I wouldn’t be surprised to see a breakout rally in EUR/USD.

So, no trade. Stay tuned for a new idea tonight!

Trade Idea: 2008-01-08 00:01

PoD Chart

Good evening! I thought I’d start off the week with a simple Fibonacci play on EUR/USD.

I have pulled up the one hour chart as I expect that if this trade triggers, I am looking to hold on to it as a very short term play. In my opinion, we may see the Euro rally just a bit in the upcoming European trading session, but may find resistance at 1.4750. With the lack of any major Eurozone news, I think volatility will be limited ahead of the US pending home sales data later today.

The 50% – 61% Fibonacci retracement levels on the recent swing move may also serve as resistance to and upward breakout. We’ll see…

So, I am looking to short and I may possibly close this trade out ahead of the US data at 8:30 am EST.

Short EUR/USD at 1.4750, stop at 1.4790, pt1 1.4710, pt2 1.4670

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

Good luck!!!