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Wednesday, December 10, 2008

Huge EUR/USD Uptrend (And Ranging Pips!)

EUR/USD has been on a massive uptrend for the past couple of days. I recommended buying at 1.2810 and dumping it at 1.2850 to make a quick 40 pips....it appears we exited the trade a bit early as the initial upswing spiked all the way up to 1.2915. I knew the pair was due to hit 1.3000, so I should have trusted my gut instinct...I was just anxious to make back the 20-30 pips I lost on the previous trade and restore my good name :)

Looking at the charts, I'm seeing support around the 1.2885 level (pair currently trading at 1.2995). Looks like the pair has currently peaked, so shorting for a quick gain seems to be our best option. I would aim for the 1.2950 mark and then reassess the market. I don't like trading the wrong side of the overall trend, so make a quick 45 pips and exit the trade.

***Edit 12:15 PM EST***

Ok well our trade got stopped out about 30 minutes after the initial post for a 25 pip loss. Apparently the pair hasn't peaked yet. We'll trade the range to (hopefully) make back our lost pips. Currently the pair is trading at 1.3038, it should range between 1.3045 and 1.3010, so I'm selling until 1.3015 then I'll reverse and buy until 1.3045.

***Edit 1:16 PM EST***

Finally, everything worked out as planned! It was a wild ride, but we made up all of our lost pips, plus an extra 28 in the process! The market ranged exactly as I had hoped, we caught 23 pips selling from 1.3038 down to 1.3015, then 30 buying from 1.3015 to 1.3045. Currently the pair is trading at 1.3047, but I think I'm done trading for the day. Although it hasn't been as profitable as I'd hoped, I'm still 28 pips richer.

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