Close Open Orders: 2009-08-28 16:00

Good afternoon! It looks like EURUSD sellers have 1.4380 on lockdown as the pair could not stay above that area for very long during the Asia and European trading sessions, and then fell below 1.4300 during the US trading session. Now that the day is done I have closed my open orders and calling it a day.

Close open orders 1.4415. No trade.

Well, it was a pretty boring week as most currency pairs didn't end that much farther from where they started at the beginning of the week. That may change as we head out of the "dog days of summer" and traders get back to their desks in September. I'm looking for to really get back into the swing of things in September, but until then have a great weekend!

BabyPips.com EURUSD Forums
Setting Newbie Expectations
My Favorite Trading Books
BabyPips.com Forex Chatroom
Forex News
Forex Reviews
Forex Trading Journal
Forex Q&A

Trade Idea: 2009-08-27 19:20

Good evening Forex junkies! The end of the trading week is approaching, so I don't have a swing trade idea but I do have a day trade idea on EURUSD. The pair is approaching the top of a trading range that has held for the past three weeks. Will the previous resistance hold long enough to grab some quick pips?

It's a simple chart setup as I have highlighted previous resistance on the four hour chart at 1.4415. Stochastics have yet to reach overbought territory, so there may be enough EURUSD bulls out there to push the pair higher and retest resistance. Will resistance hold and will sellers push the pair back into the range? We'll just have to wait and see.

Today, we do have a few potential catalysts for volatility coming upon the forex calendar. During the European trading session, there are quite a few second tier eurozone data points, but UK data may have the greatest affect on the broad markets as they release GDP. During the US trading session, we are going to see consumer data, most notably personal consumption expenditure (another measure of consumer prices).

With all this data coming out later, It should be a bumpy ride and since it is a day trade I will probably move fast on adjustments. To account for the potential volatility from today's events, my stop will be 100 pips (just under the daily Average True Range of around 120 pips). My ultimate target will be the lows of the week, just above 1.42, and I'll probably take profits along the way if the trade goes my way. Here's what I am going to do:

Short EURUSD at 1.4415, stop at 1.4515, pt1 at 1.4315, pt2 at 1.4215

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

If my trade is triggered and still open by the end of the European trading session, I will probably close the position before the end of the US session. Stay tuned!