Pick of the Day: EUR/USD – Trade Closed

Trade Closed: 2008-06-03 09:30

As hoped, EUR/USD rallied a bit higher to the 38% Fibonacci retracement level, and after hanging out just a bit above 1.56, the pair dropped as the US Dollar rallied on comments from Fed Chairman Bernanke.

Our trade hit full profit target.

1st Half: +70 pips
2nd Half: +140 pips
Total: +1.5% gain

Trade Idea: 2008-06-02 23:24

PoD Chart

We have a nice chart setup on EUR/USD which may give us an opportunity for a short term trade.

It looks like pair is in range mode after the US Dollar made a strong move against the Euro, moving from a high of just above 1.58 to a low just above 1.5450. Without any major news for both the Greenback or Euro tomorrow, I feel that if the market makes its way back up to 1.5600, we may see sellers waiting to hold that 38% Fibonacci retracement area down. Stochastics are just above neutral, so if there is further retracement to go, it hasn’t run out of steam yet.

Short EUR/USD at 1.5600, stop at 1.5670, pt1 at 1.5530, pt2 at 1.5460

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

Stay tuned for updates, good luck and good trading!

14 comments

  1. demontez

    Oh my God Pip,
    Don’t tell me i missed out on this trade. I am absolutely gutted and annoyed i did not enter in on this one.I am kicking myself hard. But nice one, mate. This was an absolute cracker.Keep it come. Thanks for helping us babies in forex.

    Reply
  2. kia4ever

    damn I missed this one worst, I was in an existing trade which dropped so I’m down 100 bucks, do you think the euro will bounce back or should I get out of my position?

    Reply
  3. PipcrawlerPipcrawler

    Well, it was a pretty big deal that Bernanke even mentioned the Greenback, as it is usually commented on by the Treasury and not the Fed. I think today’s commentary solidified for traders the view that rate cuts have stopped. This should add to the downward pressure to EUR/USD, especially if economic weakness hits the Eurozone.

    Reply
  4. pakiestra

    With a new light put on dollar sentiment(no further cuts for a time being) as Ben said today: do you still support the idea of marinating the short USD/JPY trade(now quite close to the stop loss)???

    Reply
  5. demontez

    Oh my God Pip,
    Don’t tell me i missed out on this trade. I am absolutely gutted and annoyed i did not enter in on this one.I am kicking myself hard. But nice one, mate. This was an absolute cracker.Keep it come. Thanks for helping us babies in forex.

    Reply
  6. PipWolf

    Pipcrawler,

    Thanks for this tip, I set my limit order last night and went to bed. This morning I woke up and found that the trade had been triggered and both take profits hit.

    Excellent work mate! Thank you!

    Reply
  7. PipcrawlerPipcrawler

    hey pakiestra… I probably will close out the USDJPY trade today and with a close at 105.00, it’s only a .5% loss…Today’s EURUSD win offsets it nicely…

    Reply
  8. kia4ever

    damn I missed this one worst, I was in an existing trade which dropped so I’m down 100 bucks, do you think the euro will bounce back or should I get out of my position?

    Reply
  9. PipcrawlerPipcrawler

    Well, it was a pretty big deal that Bernanke even mentioned the Greenback, as it is usually commented on by the Treasury and not the Fed. I think today’s commentary solidified for traders the view that rate cuts have stopped. This should add to the downward pressure to EUR/USD, especially if economic weakness hits the Eurozone.

    Reply
  10. pakiestra

    With a new light put on dollar sentiment(no further cuts for a time being) as Ben said today: do you still support the idea of marinating the short USD/JPY trade(now quite close to the stop loss)???

    Reply
  11. PipWolf

    Pipcrawler,

    Thanks for this tip, I set my limit order last night and went to bed. This morning I woke up and found that the trade had been triggered and both take profits hit.

    Excellent work mate! Thank you!

    Reply
  12. PipcrawlerPipcrawler

    hey pakiestra… I probably will close out the USDJPY trade today and with a close at 105.00, it’s only a .5% loss…Today’s EURUSD win offsets it nicely…

    Reply
  13. kia4ever

    hey pipcrawler do you do this everyday or do u have your own blog, sorry if this has been asked before I’m new to this site,

    btw about my position i might hold on to it longer there has to be some recovery tomorow

    Reply
  14. kia4ever

    hey pipcrawler do you do this everyday or do u have your own blog, sorry if this has been asked before I’m new to this site,

    btw about my position i might hold on to it longer there has to be some recovery tomorow

    Reply

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