Close Open Orders: 2008-08-22-18:08
The EUR/USD never made it any higher than 1.4900 during today’s trade before the Greenback began to rally across the board on oil weakness. I am going to close my open orders as we head into the weekend.
Close open short orders. No trade.
Have a great weekend everyone and see ya next week!
Trade Idea: 2008-08-21 18:23
To close out the week, I picked out a nice chart setup on EUR/USD as the pair rallies higher today on US Dollar weakness, towards an area of previous resistance. There was quite a bit of uncertainty around 1.49 – 1.50, so will we see it again?
Weakness in the Greenback was sparked off after US Leading Indicators signals further slowdown on weak housing and employment. This is an extension of a move that’s been going for the past few trading sessions and could be possibly running out of steam (as indicated by stochastics). The area between 1.49 and 1.50 could be closely watched as an area of resistance as it was back on Aug. 11th. I believe traders may take interest once again throughout today’s Asia and European trading session.
The event to watch tomorrow will be Federal Reserve Chairman Ben Bernanke’s speech on financial stability. His commentary can cause a bit of volatility, especially in today’s environment of uncertainty. So, I may or may not remove my orders/close position ahead of his speech depending on price action. For now I look to short at the top of the previous consolidation area.
Short EUR/USD at 1.4955, stop at 1.5015, pt1 at 1.4895, pt2 at 1.4805
Remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly.