Pick of the Day: EUR/USD - Trade Closed | Forex Blog: Pick of the Day

About Pick of the Day

At the end of each trading day, I will find what I believe is the best looking short term trade setup for the upcoming trading day. If you're a forex newbie, it can be tricky in the beginning trying to figure out how to look at charts and draw lines. My goal is help you understand the psychology of price movements so you can learn to analyze your own charts and trade on your very own. Trades will be posted by 1 am ET, Monday through Thursday evening.

Read First: Trade Rules!!

Del.icio.us Bookmark

Technorati Favorite

Latest Posts

July 2007

S	M	T	W	T	F	S
1	2	3	4	5	6	7
8	9	10	11	12	13	14
15	16	17	18	19	20	21
22	23	24	25	26	27	28
29	30	31

Pick of the Day: EUR/USD - Trade Closed

Posted 12:15 27 July 2007 by Pipcrawler

Trade Closed: 2007-07-27 12:15

Our trade closed at full profit as the sell off momentum continued at the start of the European trading session.

1st half: +20 pips
2nd half: +50 pips
Total: +70 pips

I hope everyone did well. Have a great weekend!

Trade Adjustment: 2007-07-27 02:15

No new "Pick" tonight - just a quick adjustment to our existing position.

Our first profit target was hit to lock in +20 pips. Please adjust the stop on the remaining position to breakeven to create a risk free trade. Stay tuned for more updates during the morning US session.... Good luck!

Trade Update: 2007-07-26 14:20

Our orders to short at 1.3750 were triggered and the pair is currently trading around the entry point at 1.3572. With the Greenback mixed against the majors, it looks like there is no clear direction for the pair. So, I will continue to hold this pair short and cancel open orders to short at 1.3685.

Good luck and stay tuned!

Trade Idea: 2007-07-26 00:25

It looks like the Dollar has gained a bit of its mojo back as it rallied against the other majors today. It looks like a bit of profit taking after the long Euro rally, but what's next for the pair??

Well, we have significant data for both the Euro and the Dollar with German Ifo Business data in the upcoming Euro session and Durable Goods Orders and New Home Sales in the next US trading session. For this reason, we should see limited moves in the Euro session, and maybe further Dollar rallying in the US session as traders have something else to focus on besides housing data with the Durable Goods numbers.

On the chart, we can clearly see momentum to the downside in the pair. We will try to jump into that direction on any retracement or break of the previous lows. We will have wide stops to weather the volatility and if one order is triggered, we will cancel the other. Here it goes:

Short EUR/USD at 1.3750, stop at 1.3795, pt1 at 1.3730, pt2 at 1.3700

or

Short EUR/USD at 1.3685, stop at 1.3725, pt1 at 1.3665, pt2 at 1.3645

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

Good luck and good trading!