Close Open Orders: 2011-08-26 3:05 ET
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On the chart above, we can see the pair making a move lower and finding support at the bottom of the marked range. We’ve got the US quarterly GDP numbers up at the beginning of today’s US session, which are forecasted to come in slightly below the previous read. This could cause a USD sell off (EUR/USD rally) and I don’t want to be caught up in a position into the weekend, so I have decided to close my open orders at 1.4500. No trade.
I also have the outcome of the Jackson Hole symposium to consider, but it already looks like that we won’t see QE3 from Big Ben. Of course, I’m not a gambling man, so I’ll just wait on what the Fed actually says before I take a position.
This looks like it for me for this week, but I’m closely watching a retracement on Cable that looks mighty enticing for a day trade short. Stay tuned on my Twitter and Facebook pages! Have a great weekend everyone!
Trade Idea: 2011-08-24 8:58 ET
Good morning Forex fans! I’m going to go with a simple range play on EUR/USD as I think we the market will wait until after the central bankers meeting before committing to one direction or another. Check it out!.
The focus this week is the outcome of the Jackson Hole economic symposium. This is where prominent figures in economics and finance gather to discuss current global issues. What traders are waiting for is whether or not we will see the Federal Reserve come out of it ready to engage in another round of stimulus. Until we get word, I feel the markets will stay rangebound as traders don’t want to commit and possibly get run over by whatever the Fed decides.
For me, I like the strong resistance level on EUR/USD to play my views. On the chart above we can see 1.4500 as a high probability top; it has strongly held this week and last. If there is another retest, I will short and go for the bottom of the well defined range around 1.4350. My stop will be about a quarter of the weekly average true range.
Short at 1.4500, stop at 1.4575, pt at 1.4350
This trade structure gives me a 2:1 potential reward-to-risk ratio. Of course, I will remove open orders and positions before the end of the week and probably ahead of the US GDP numbers on Friday. Also, any adjustments will be announced my Twitter and Facebook pages first–sign up to stay tuned! Good luck and good trading!