Trade Closed: 2010-08-27 3:31

Boo! What seemed like a sweet setup turned sour on me! Too bad I wasn't able to close my trade before the US published their unemployment claims data. When the news broke out that unemployment claims came in better than expected, investors grew more confident and everything rallied, including NZDUSD! The pair rose just enough to hit my stop before it settled down and returned near my entry point.

I guess I'll just have to chalk this one up to experience. This week hasn't been so good for me, but I think I'll clear my mind and treat myself to a few ice cream cones over the weekend. Catch you all next week, guys!

Closed NZDUSD short at .7080

P/L: -47 pips/ 0.5%

Trade Idea: 2010-08-26 1:31

I don't usually go for day trades, but this setup on NZDUSD has got my sweet-tooth tingling! It seems like the pair is testing the falling trend line on the 15-minute chart again. I think I'll side with the bears on this one since stochastics is well within overbuying territory.

Price is also making lower highs while stochastics is making higher highs. You know what that means... A bearish divergence! And to top it all off like a cherry on a sundae, a doji recently formed!

For now, it seems like the bias for this pair is still downwards, thanks to ongoing risk aversion. Just yesterday, the US printed out a couple of disappointing figures, namely the durable goods orders and new home sales. Both reports came in much worse than expected, suggesting that fears of a double-dip recession might actually be realized. Yikes!

Anyway, I just couldn't let this trade slip away so I jumped in at market. Here are the details of this day trade:

Short NZDUSD at market (.7033), stop loss at .7080, pt at .6940.

Since I still have an AUDUSD short open, I'm only risking 0.5% of my account, which is half my usual risk, on this one. Wish me luck!