Trade Closed: 2009-03-25 21:45
Good evening! My day trade managed to close with a profit as we had a wild day during the US trading session. US Treasury Secretary Geithner commented on China’s proposal for a new international reserve currency and the US Dollar sold off with the quickness!
This pushed the markets up to my short levels at .7000 and triggered my short orders. Luckily for me, Geithner back tracked and said, “I think the dollar remains the world’s dominant reserve currency.” The Greenback rallied, just enough to hit my first profit target at .6940, where I closed half of my position and adjusted my stop to breakeven to lock in profits. Unfortunately, it was back to US Dollar selling business and the market rallied back up to close out my remaining position at breakeven.
1st Half: +60 pips
2nd Half: +00 pips
Total: +0.25% gain
So, a nice little gain on the trade and I hope to post more short term trades in the future for ya’ll. Stay tuned and good luck!
Trade Idea: 2009-03-25 00:44
This trade idea is based on technicals and a short term sentiment change that the US Dollar sell off is a bit over done and traders are now taking profits.
I have the 15 min chart up, and we can see a short term intraday trend. I’d like to jump in short with the trend if the pair retests the psychologically significant level of .7000. This also happens to line up with previous support-turned-resistance and the 50% Fibonacci area. Stochastics are rising so the pair may rise up a bit more, and with news reports coming out in both the Eurozone and the US, we may see enough volatility to take the market to .7000.
Because it is a short term trade, which I may be taking more of in the future, I am only going to risk 0.50% of my account on this trade. This means I will have to adjust my position size accordingly. Here’s what I’m going to do:
If my trade is not triggered or if I have an open position, then I will close everything down at the end of the European and US trading session overlap (12pm EST). Stay tuned!