Trade Closed: 2010-01-08 1:35:15
Like I promised, I’d close my trade before the release of the US non-farm payrolls report. Although it seems like the EURUSD broke down from its consolidation, I wouldn’t want the extra volatility to wipe out my recent gains. Yesterday, I closed half of my trade at 1.4351 and today I closed the rest of my trade at 1.4315. It’s about time I locked in those profits before I head off to enjoy the weekend!
1st half: +99 pips
2nd half: +135 pips
Total: 1.17% gain
Trade Update: 2010-01-06 21:55:14
Good day everyone! Only one week to go before American Idol Season 9 kicks off… I can’t wait! But let’s talk about my open EURUSD short trade first…
As much as I’d like to let my profits run, I think I have to adjust my position a little bit as the ADP non-farm employment change is coming up tomorrow. Apparently, only 74K net job losses are expected for December which, in my opinion, is a very significant improvement over the 169K net non-farm jobs lost in the previous month. The release of the actual figure could lead to some volatility in the EURUSD pair and mess up my make up… Oh, I meant my trade! With that said I’ll lock my profits in one position and, at the same time, move my stop to my entry point on the other.
Trade Idea: 2010-01-05 21:53
As you can see from the chart above, the fiber (EURUSD) attempted to move past the resistance near the 1.4450 price area at least three times during the past 3 trading days. However, resistance held firmly each time. Will we see another retest today? It seems that the pair is consolidating at the moment so I might be able to get a better price and enter a short trade later on today.
There are a couple of economic data coming out this week but I suspect traders will be holding out on putting any huge positions on the table ahead of the non-farm payrolls report on Friday. Because of this, I suspect major support and resistance levels will continue to hold. Also, seeing as how risk appetite revisited the markets yesterday, better-than-expected results from the pending home sales, ISM non-manufacturing and ADP non-farm employment change could help me get a better entry price. To avoid event risk, I’ll be sure to close any open orders and/or positions ahead of the NFP report on Friday.
As usual, I will risk 1% of my account on this trade. My plan is to:
Short at 1.4450, stop loss at 1.4550, take profit at 1.4280 and 1.4180
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