This week has not been a good week for the Euro with scrutiny of the sovereign debt of Greece. Fears of contagion throughout the other members of the PIGS group of countries (Portugal, Italy, Greece & Spain) and the global financial system have weighed heavily on Traders. So no surprise that most people have been looking to sell Euros this week and yesterday I was no different.
My early morning start (0530) allowed me to find an area of consolidation on EURUSD and I placed my trades accordingly. I was short at 1.3656, with a stop at 1.3671 and a target of 1.3611.
You can see from the chat that at:
Point 1 – Price breaks the level of support I had determined through my strategy.
Point 2 – Price hits my +20 mark and so my stop loss goes to break-even
Point 3 – Price hits my target at 1.3611
Price continued down very strongly for the remainder of the European session and I’m sure I could have harvested many more pips. However I’m always happiest when I have targets in place and I plan my trade and trade my plan. As it was this trade was a nice +45 points of profit for a 3:1 R:R trade. Very nice and it helped me finish off a positive1st week back trading.
February 14, 2010
FX Trading, Trading Set-ups