After a quiet Asia and European trading session, EUR/USD rallied big time midway through the US session as traders pushed the market up from 1.2450 to 1.2800 – over 300 pips. This brought my remaining position back to breakeven, where my adjust stop was hit and my trade was closed.
1st Half: +200 pips
2nd Half: +00 pips
Total: +0.5% gain
I suspect this rally at the end of the Euro/US overlap was due to profit-taking and short-covering ahead of the big G-20 meeting tomorrow.
The outcome is unknown for that meeting and traders are less likely to hold a position into something that may push the markets one way or another. I will probably stay out of the markets as well tomorrow and start my weekend early. See ya next week!
Trade Update: 2008-11-11 18:42
What’s up! Just a quick update on my trade as EUR/USD hits my first profit target at 1.2500. A portion of my position has been closed and now it’s time for some adjustments.
Half position closed at 1.2500 to lock in profits. Adjusting stop from 1.2900 to breakeven (1.2700). I am going to hold my remaining position and trail stop by 200 pips.
No major news in the upcoming trading session for either the Euro or the Greenback. Look for market sentiment to continue to dominate price action until we see data come out on Thursday. Stay tuned and let’s see where this puppy goes!
Trade Idea: 2008-11-10 20:41
Slowing global growth is still the main focus of the markets and it looks there is a technical play forming on EUR/USD to go along with that sentiment as we speak. More losses for the Euro this week?On the four-hour chart, we have a simple technical setup as a symmetrical triangle forms showing price consolidation. It looks like the rising trend line is being broken on the current candle. This is a simple bearish setup with the potential to retest previous lows around 1.24 and beyond.
Again, the current concern is still the slowdown in the global growth story, and without any major economic news releases, this sentiment will continue to play out in price action. Here’s what I’m gonna do:
Short at market (1.2700), stop at 1.2900, pt1 at 1.2500, pt2 at 1.2300
Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.
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