EUR/USD Hourlies
On the dailies, support is found at the fibo 50.0% retracement level. As can be observed, prices have been hovering around that level for 6 days. Next support level to look out for is 61.8% retracement level.
Jan. 17 2007 (EUR/USD trade)
Trade: Long 3 lots of EUR/USD @ 1.2919.
Stop: 1.2885 (Support level is found at 1.2900 but decided to cut some slack below support).
Target: 1.3010 (Key resistance level is found at 1.3000. Will review target once 1.3000 has been breached).
Result: Trade closed on Jan. 17 @ 1.2916 (-3 pips).
Comments: Finally EUR/USD has retreated to a level where I am comfortable in going long. Prices has been hovering around 1.2950-80 for the past few days thus making it too expensive for me to go long. Woke up this morning to find EUR/USD in the 1.2910 range and thus decided to jump at the opportunity. Within the past 6 hrs, managed to capture +16 pips so far.
MACD shows an intersection on the hourlies signalling increasing velocity in uptrend. Slow stoch and RSI indicates beginning of overbought conditions. However, still got room for further upside.
EUR/USD Dailies
On the dailies, support is found at the fibo 50.0% retracement level. As can be observed, prices have been hovering around that level for 6 days. Next support level to look out for is 61.8% retracement level.Jan. 17 2007 (EUR/USD trade)
Trade: Long 3 lots of EUR/USD @ 1.2919.
Stop: 1.2885 (Support level is found at 1.2900 but decided to cut some slack below support).
Target: 1.3010 (Key resistance level is found at 1.3000. Will review target once 1.3000 has been breached).
Result: Trade closed on Jan. 17 @ 1.2916 (-3 pips).
Comments: Finally EUR/USD has retreated to a level where I am comfortable in going long. Prices has been hovering around 1.2950-80 for the past few days thus making it too expensive for me to go long. Woke up this morning to find EUR/USD in the 1.2910 range and thus decided to jump at the opportunity. Within the past 6 hrs, managed to capture +16 pips so far.
However, I panicked when prices crashed in a matter of 5 mins to 1.2910-20 and decided to close out my position at 1.2916, losing -9 pips in the process. However, I am pretty comfortable with my move as I didn't like the fact that I was having a long USD/JPY and EUR/USD position ahead of a major US event (Producer Price Index was released on Jan. 17). Both trades are contradictory to each other in light of the PPI data, hence I closed out my EUR/USD to focus on my USD/JPY trade.
As a post-note, the PPI data beat most expectations and showed that US inflation is still a key risk to the economy. However, to my dismay, USD/JPY remained little changed. Must find out the reason to it.
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