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Trade Closed: 2008-06-03 09:30

As hoped, EUR/USD rallied a bit higher to the 38% Fibonacci retracement level, and after hanging out just a bit above 1.56, the pair dropped as the US Dollar rallied on comments from Fed Chairman Bernanke.

Our trade hit full profit target.

1st Half: +70 pips
2nd Half: +140 pips
Total: +1.5% gain

Trade Idea: 2008-06-02 23:24

PoD Chart

We have a nice chart setup on EUR/USD which may give us an opportunity for a short term trade.

It looks like pair is in range mode after the US Dollar made a strong move against the Euro, moving from a high of just above 1.58 to a low just above 1.5450. Without any major news for both the Greenback or Euro tomorrow, I feel that if the market makes its way back up to 1.5600, we may see sellers waiting to hold that 38% Fibonacci retracement area down. Stochastics are just above neutral, so if there is further retracement to go, it hasn’t run out of steam yet.

Short EUR/USD at 1.5600, stop at 1.5670, pt1 at 1.5530, pt2 at 1.5460

Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.

Stay tuned for updates, good luck and good trading!

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