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Close Open Orders: 2008-06-13 12:41

The Greenback continued to rally throughout the Asia and European trading sessions, bringing EUR/USD down to 1.5300 before the pair found buyers to stall the rally.

So, no retracement as momentum brought in sellers to take advantage of the interest rate hike sentiment that traders are feeling now as we tackle rising inflation across the globe. With the G-8 meeting coming up this weekend, and the possible volatility it may bring, I’d like to close out open orders to short. No trade.

Have a great weekend everyone and don’t forget to check out!

Trade Idea: 2008-06-13 01:52

PoD Chart

We didn’t get a chance to catch yesterday’s Dollar move, but maybe we’ll get another chance today as the pair retraces. Will CPI reflect the rise in commodities and energy prices and continue to boost the Greenback?

On the chart, it looks like traders are taking a breather from the Dollar rally over the past couple of days, giving us a possible opportunity to grab some Greenbacks at a better price. I’m going conservative by waiting to see if the pair will raise up to the 50% to 61% Fibonacci level (For you more aggressive traders, you may want to consider scaling into a short position starting at the 38% Fibonacci area).

US CPI and University of Michigan Consumer Sentiment report is due out later today. Traders may focus on the CPI number, looking for confirmation on price inflation and the need for a rate hike from the Fed. I think we will see the US Dollar rally up until that data release, and maybe a pull back on the Consumer Sentiment report as it may indicate the loss of confidence from consumers. Let’s go!!!

Short EUR/USD at 1.5500, stop at 1.5570, pt1 at 1.5430, pt2 at 1.5360

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

Stay tuned, good luck and good trading!

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