Pick of the Day: EUR/USD – Trade Closed

Trade Closed: 2008-08-13 10:41

After my trade adjustment, EUR/USD fell once again back to Euro session low, around 1.4860, where it triggered my adjusted profit target and closed the trade out.

1st Half: +50 pips
2nd Half: +120 pips
Total: +1.7% gain

I have a feeling we may see choppiness after the huge move over the past week or so, along with the amount of data to be released this week to push the markets around back and forth. I’ll probably stick to ideas similar to today’s, unless we see another sentiment changing comment from a central bank official or a geopolitical event. Stay tuned and don’t forget to check out Freshpips.com for Forex news! Let’s help each other find out what’s moving the markets!

Trade Adjustment: 2008-08-13 08:41

My short trade was triggered during the morning European trading session as EUR/USD and quickly fell lower hitting lows around 1.4860.

The first profit target was hit and a portion of the short position was closed. I adjusted stop on remaining position to break even. I will continue to hold onto my short position and adjust my second profit target to 1.4860 – the Euro session low.

Stay tuned and Good luck!

Trade Idea: 2008-08-13 00:56

PoD Chart

For the Forex traders who have been on holiday for the past few weeks, the Greenback has been on a tear as the “short Dollar” trade has unwinded and the Euro has fallen across the board. Today, volatility has been light relative to the past few trading sessions, so will the momentum lower on EUR/USD continue?

Our chart setup is a simple Fibonacci play on the one hour chart, and I like the 61% Fib retracement area as a potential resistance play as it lies just beneath 1.50 – a major psychological level. We have Eurozone industrial production and a good amount of US data in the line up of event risk. We may not see too much volatility during the Euro trading session, but the US session may be a bit different as retail sales can push the Greenback around a bit, as well as the import and business data to follow soon after.

I look to short the currency pair to go along with the higher time frame trends.

Short EUR/USD at 1.4980, stop at 1.5030, pt1 at 1.4930, pt2 at 1.4830

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

So, a nice simple play today, and depending on what happens during the Euro trading session, I may adjust orders/positions ahead of the US data. Stay tuned, good luck and good trading!

Don’t forget to check out Forex news at Freshpips.com!!

  • droog

    You got that spot on me ol flower.

  • droog

    You got that spot on me ol flower.

  • enochbenjamin

    congrats!

  • delbertino

    If US stands up to Putin we will see parity. Eastern Europe is happenatin’, now. I check those charts and get clobbered by them regularly. Thailand is immense down the road. The Yen is king for a day and Australia is a real estate play and New Zealand, too. Pacific rim: the back way in. You have my enduring respect, Sarge Sir.

  • Pipcrawler

    Thanks for the comments guys!

  • enochbenjamin

    congrats!

  • delbertino

    If US stands up to Putin we will see parity. Eastern Europe is happenatin’, now. I check those charts and get clobbered by them regularly. Thailand is immense down the road. The Yen is king for a day and Australia is a real estate play and New Zealand, too. Pacific rim: the back way in. You have my enduring respect, Sarge Sir.

  • Pipcrawler

    Thanks for the comments guys!