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!

  • 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.

  • 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?

  • Pipcrawler

    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.

  • 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)???

  • 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.

  • 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!

  • Pipcrawler

    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…

  • 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?

  • Pipcrawler

    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.

  • 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)???

  • 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!

  • Pipcrawler

    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…

  • 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

  • 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