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Close Open Orders: 2007-03-21 01:20

It looks like currency markets are quiet at the moment as traders sit and wait for news to come out later today. EUR/GBP has been trading in a 5 pip range since about 7:00 pm EST yesterday. This is a good sign that we may see a breakout later today, especially with the Bank of England Meeting Minutes coming out at 5:30 am EST. Also, ECB President Jean-Claude Trichet will be speaking today. With so much uncertainty coming up, we will remove all open orders on this pair to avoid a breakout or whipsaw action.

Cancel open orders to go long at .6770

Trade Idea: 2007-03-20 10:02

crosseyed chart

We have a nice trade setup forming with EUR/GBP. The yearly UK Consumer Price Index came out this morning with slightly better than expected numbers at 2.8% versus the forecast of 2.7% on the headline, and inline on the core number at 1.7%. This brings the pair closer to a support area around .6770, where the pair stopped and turned on a dime back on March 12th.

With stochastics heading lower, we may see this selloff lose steam around that support area and look for a long position in this ranging pair.

Long EUR/GBP at .6770, stop at .6740, pt1 at .6805, pt2 at .6850

Remember to never risk more that 1% of your account on any single trade, so please adjust your position sizes accordingly.

Good luck and good trading!

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.