Pick of the Day: EUR/USD – Trade Closed

Trade Closed: 2007-01-25 00:10:20

With all of the significant data for the Dollar and Euro having been released today, it doesn’t look like traders are excited about neither of these currencies. Again, we saw a slightly weaker German Ifo Business Climate Index number and we just saw the US Existing Home Sales number come out weaker than forecasted as well at 6.22M, and it seems like there was barely any reaction in the Forex market.

The second half of our long trade was stopped out for -15 pips. With slightly weaker Eurozone and US data I don’t see the market moving too much more for the rest of the Euro trading session which ends at 12:00 EST. So I will remove all open orders and it looks like we took a tiny hit of a 10 pips today.

1st Half: +05 pips
2nd Half: -15 pips
Total: -10 pips

Stay tuned for the next trading opportunity!

Trade Adjustment: 2007-01-25 00:08:35

Our long trade triggered early in the Euro trading session, and we came within 2 pips of hitting pt1. German Ifo Business Climate Index came in slightly disappointing 107.9 versus the forecast number of 108.9. Because of this, I think Euro buying maybe Existing Home Sales coming up at 10:00 EST I’d like to make a few trade adjustments.

Close half of open position at current market price (1.2990), adjust pt1 to 1.3000, and adjust stop of open position to 1.2970.

Cancel open orders and replace with:

Short EUR/USD at 1.2960, stop at 1.2990, pt1 at 1.2940, 1.2920

Good luck and good trading!
Trade Idea: 2007-01-25 00:42

PCPOD.ff.png

Today’s pick should give you “deja vu” as it is the same type of setup as we found in GBP/USD from yesterday. We see that EUR/USD has been ranging in a tight consolidation pattern of about 20 pips. This is usually indicitive that traders are waiting for a catalyst event, and today I think that catalyst is the German Ifo Business Index.

This index measures the mood of firms in manufacturing, construction, wholesale and retail. It is closely watched as it gives the business outlook of thousands of firms in the upcoming months. We will look to play a breakout if it occurs. Here’s a couple of trade ideas:

Long EUR/USD at 1.2985, stop at 1.2945, pt1 at 1.3005, pt2 at 1.3015

or

Short EUR/USD at 1.2940, stop at 1.2980, pt1 at 1.2920, pt2 at 12900

Remember to never risk more that 1% of your account on any single trade, so please adjust your position sizes accordingly.

Good luck and good trading!

  • pinetree

    You wonder if its worth trading news reports. Seems like one is just gambling.

  • pinetree

    You wonder if its worth trading news reports. Seems like one is just gambling.

  • pipcrawler

    Yeah…news events are tricky and I do avoid them sometimes. Other times they can work to your advantage if you are ready for them. It all depends on the situation…but one might say everything in life is a gamble, right? =)

  • pipcrawler

    Yeah…news events are tricky and I do avoid them sometimes. Other times they can work to your advantage if you are ready for them. It all depends on the situation…but one might say everything in life is a gamble, right? =)