Close Trade: 2008-08-29 15:32
Hello! After a bit of rollercoaster action throughout the Asia and Euro trading session, the Greenback found a bid on positive manufacturing and consumer sentiment data out of the US. This took my position below .8600 and into positive pips. With the long holiday weekend approaching I have decided to close out my trade for a very small profit to avoid any weekend risk.
Close trade at market .8590
Total: +30 pips/ +0.30% gain
Have a great weekend everyone!
Trade Idea: 2008-08-28 12:10
On the chart, I’ve got a basic Fibonacci play setup going on and it looks like the market found a short term top around the 50% and 61% Fib retracement levels. I think we may see traders jump at these levels to play the longer term sentiment that we may see rate cuts from the RBA. The recent rally has been on US Dollar weakness as oil rallies on hurricane concerns. This sentiment may have been full priced in and depending on what happens as Hurricane Gustav moves into the Gulf will determine oil price movement and the Greenback. Also, US GDP came in better than expected today, giving the USD a bit of a boost and hope for the Greenback.
For now, I am going to concentrate on the technicals and the longer term trend lower. I am going to: