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Trade Closed: 2009-12-16 21:41

PoD Chart

Whee! My second TP got hit! I was already thinking of closing early since the EURUSD was consolidating yesterday and it seemed unable to break below minor support at 1.4505. Thanks to a relatively upbeat FOMC statement, traders bought up the dollar on the speculation that the Fed would hike rates earlier than expected.

1st Half: +130 pips / +0.55% gain
2nd Half: +280 pips / +1.17% gain
Total: +1.72% gain

It looks like dollar buying could be here to stay for the rest of the year. Although I have a feeling that this dollar run could also be a result of position traders unwinding their short positions that they had been building up throughout the year. In any case, I’m happy with my win and I’ll be looking for some more opportunities to trade before things get hectic at home with all my relatives coming home. My one-year old niece Katherine will be visiting me – she’s so cute!

Trade Update: 2009-12-13 21:59

Wootie Woot Woot! Looks like my first TP got hit! Price had actually been bouncing from my entry price several times during the week. It seems like it could be a good support turned resistance point. Fortunately for me, we saw some good data from the retail sales and consumer sentiment reports last Friday. It seems like we’re seeing a new trend develop right now – whenever stocks rise, so does the USD! This is a change from the correlation that we were seeing for most of the year.

I’m moving my stop loss to my entry price at 1.4780. This will essentially create a risk free trade. Hope this works out for me!

Trade Idea: 2009-12-7

PoD Chart

Hello there my forex friends, I’m back fresh from a rejuvenating weekend! My New Moon movie date and girls’ night out was definitely a blast! And even though I got a bit bummed out from my GBPJPY loss, I’m ready to jump back in the markets with this new short EURUSD trade idea.

Judging from the NFP-inspired greenback rally last Friday, US dollar strength could continue to dominate. Traders could continue to stock up on the greenback as the US reported only 11K in net job losses for November. Pretty shocking, right? Although it’s too early to call it a recovery for the US labor market, the drop in their unemployment rate is definitely an early holiday present for the US economy – and probably for the US dollar too!

Looking ahead, central bank leaders from both Euro zone and US are scheduled to deliver speeches today. Now, we all know how Fed Chairman Ben Bernanke has endorsed US dollar strength and how ECB President Jean-Claude Trichet supports a pro-USD stance. More jawboning from them, perhaps?

Lastly, I like this short play because it goes along with my technical analysis. Support around 1.4800-1.4820 area has been holding on strong and a break in this area could take the pair all the way down to 1.4650 and beyond. As usual, in order to control risk, I’ll be placing my stop roughly equal to the pair’s average daily pip movement.

Here’s what I’m going to do:

Short at 1.4780, pt1 at 1.4650, pt2 at 1.4500, stop at 1.4900. I’ll risk 1% of my account on this trade.

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