-29 pips of the Unpredictable Monday.
As I've yet to transfer to a new broker, Oanda, recommended by a friend. I've decided to try with my existing funds at FXCM. Throughout the day, I've only placed 1 trade.
Trade: Long 10 lots of EUR/USD @ 1.2406
Stop: 1.2370 ( Low at 21st of April 2006)
Target: 1.2425
Result: Trade closed on 24th of April 2006, stopped out of the 10 lots @ 1.2377 (-29 pips).
Comments: After watching the chart before positioning the limit orders. 2 points were clearly stated. It's either euro will be extremely bullish at the start of the market or it will drop for retracement getting back to the trend seen in daily charts from the beginning of the year. What's deceiving is what looks like a bull for Euro turned out to be a Big Bear... trapping alot of Euro 'hitch-hikers', trying to join the party in Euro. That's where I got trapped.
Thoughout the Asian & European session, EUR/USD did not show any signs of direction it was heading. An extremely narrow range to trade in, but upon reaching the New York session, more actions are seen, it's known that the increase of Euro as I'm writing this now is caused by USD sellers, and NOT Euro buyers. So there were no clear indicators of trading, technically of course. It could be due to:
1. G7 meeting that was held in the weekend which fuels the Asian Currency especially yen to rise.
2. Qatar's central bank that has been buying euros in the market and could keep building its euro holdings until they make up 40 percent of its $4.5-billion reserves.
3. The Euro is a step closer to become an alternative world reserve currency received another vote of confidence this week as more central banks diversify away from dollars.
However with all these information, plus with tomorrow's plenty of Euro-zone economic releases that will eventually push to a higher limit if it favors the currency. Today's report of the French Business Confidence Indicator rose by +2 from a previous of 106 to 108, and German industrial production gained for a third month, showing growth is picking up in the 12-nation euro economy.
An index measuring sentiment among French manufacturers increased to 108 in April, the highest since March 2001, Paris- based statistics office Insee said today. German industrial production rose 1 percent in February after advancing a revised 0.4 percent in January.
A retracement of EUR/USD is highly unlikely for tomorrow as the Euro-zone shows a strong economic growth for the month of April. But, it'll the market's decision
If the market does retrace, then hopefully I'll be in the business
Trade That I'm Waiting For:
Trade: Buy 10 lot of EUR/USD on a retracement @ 1.2345
Stop @ 1.2320 ( Fibo 38.2)
Target: 1.2400
This trade might change according to the market data that comes out to be supportive in favor of Euro if retracement is not seen.
Trade: Buy 10 lot of EUR/USD on a trend rally @ 1.2415
Stop @ 1.2390 ( 19/4/2006 high turned support)
Target : 1.2500
The market today is somehow a 'stage' setup for tomorrow's (Tuesday) 'show'. It'll either be the Bull or the Bear is performing. Pick one...
Trade: Long 10 lots of EUR/USD @ 1.2406
Stop: 1.2370 ( Low at 21st of April 2006)
Target: 1.2425
Result: Trade closed on 24th of April 2006, stopped out of the 10 lots @ 1.2377 (-29 pips).
Comments: After watching the chart before positioning the limit orders. 2 points were clearly stated. It's either euro will be extremely bullish at the start of the market or it will drop for retracement getting back to the trend seen in daily charts from the beginning of the year. What's deceiving is what looks like a bull for Euro turned out to be a Big Bear... trapping alot of Euro 'hitch-hikers', trying to join the party in Euro. That's where I got trapped.
Thoughout the Asian & European session, EUR/USD did not show any signs of direction it was heading. An extremely narrow range to trade in, but upon reaching the New York session, more actions are seen, it's known that the increase of Euro as I'm writing this now is caused by USD sellers, and NOT Euro buyers. So there were no clear indicators of trading, technically of course. It could be due to:
1. G7 meeting that was held in the weekend which fuels the Asian Currency especially yen to rise.
2. Qatar's central bank that has been buying euros in the market and could keep building its euro holdings until they make up 40 percent of its $4.5-billion reserves.
3. The Euro is a step closer to become an alternative world reserve currency received another vote of confidence this week as more central banks diversify away from dollars.
However with all these information, plus with tomorrow's plenty of Euro-zone economic releases that will eventually push to a higher limit if it favors the currency. Today's report of the French Business Confidence Indicator rose by +2 from a previous of 106 to 108, and German industrial production gained for a third month, showing growth is picking up in the 12-nation euro economy.
An index measuring sentiment among French manufacturers increased to 108 in April, the highest since March 2001, Paris- based statistics office Insee said today. German industrial production rose 1 percent in February after advancing a revised 0.4 percent in January.
A retracement of EUR/USD is highly unlikely for tomorrow as the Euro-zone shows a strong economic growth for the month of April. But, it'll the market's decision
If the market does retrace, then hopefully I'll be in the business
Trade That I'm Waiting For:
Trade: Buy 10 lot of EUR/USD on a retracement @ 1.2345
Stop @ 1.2320 ( Fibo 38.2)
Target: 1.2400
This trade might change according to the market data that comes out to be supportive in favor of Euro if retracement is not seen.
Trade: Buy 10 lot of EUR/USD on a trend rally @ 1.2415
Stop @ 1.2390 ( 19/4/2006 high turned support)
Target : 1.2500
The market today is somehow a 'stage' setup for tomorrow's (Tuesday) 'show'. It'll either be the Bull or the Bear is performing. Pick one...
posted by 4xTrader at
3:06 PM
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