Pick of the Day: EUR/USD - Close Open Orders
Close Open Orders: 2008-03-26 16:05
Looks like we were right, but a bit off on entry as EUR/USD rocketed higher on positive Eurozone data and weak US data. There was no retracement to our entry point, so no trade to catch the run higher. We will close our open orders as the pair is now testing 1.58.
As the pair approaches 1.59 once again, we will look for resistance and a possible short play.
Trade Idea: 2008-03-25 00:45
EUR/USD has been in consolidation mode for the last few trading sessions. We just saw a drop in the Greenback against the Euro within the last few hours to break outside of the range. Is the market ready to test 1.59 once again?
This pattern occurred earlier this month, as highlighted on the chart. Without any major difference or change in fundamentals since then, we may see traders looking to buy back the Euro and continue the longer term trend higher. Also noted on the chart, it looks like the pair found support at the 38% Fibonacci retracement level. This was drawn on a daily chart using around 1.45 and 1.59 as the swing points. It seems that support held pretty well and brought buyers back in.
I look to long, but only if the pair retraces from such a relatively strong move in the asian session. I'd like to see it come back to 1.55 before going long.
Long EUR/USD at 1.5500, stop at 1.5400, pt1 at 1.5600, pt2 at 1.5800
If this trade triggers and goes our way, it looks like it'll be more than a day trade. No major fundamental events foreseen for the next few hours, so we will look for technicals to play out. Stay tuned, good luck and good trading!
