#7 – 02.09.2014
EUR/USD – BREAKS LOWER TARGETING 1.3100 and below to 1.3000
Further to my articles regarding the EUR/USD consolidating around 1.3175 – 1.3200, we have now seen a significant break lower.
It is important for “newbie” traders not to sucked into to chasing this pair lower whilst it hovers just above key support of 1.3100.
Whilst I am of the opinion if you shorted this pair closed your eyes are re-opened them in three/four months time you would be very happy with the result, however it is always a sound trade if you can enter at the best price possible. Currency pairs DO NOT move in straight lines, they will bounce around.
I am personally looking to enter short on a pullback to 1.3150 targeting below 1.3100.
The caveat to bear in mind with this pair is that the ECB has its interest rate decision and Mario Draghi’s Press Conference this Thursday 4th September 2014. Whatever happens, I do not want to be in any position containing the EUR on Thursday. To be in any position for such a high-risk news event is in my opinion poor RISK MANAGEMENT.
The market is expecting that the ECB will announce further easing, if they do not I am expecting the GAP from two Sundays open two weeks ago to be the target for EUR/USD at 1.3250 to be filled.
Should the EUR/USD collapse (unlikely) between now and Thursday’s Press Conference, and my trade has triggered I may stay short but take profits off the table and Have my stop at break even. To me this is good RISK MANAGEMENT.
Remember to keep your broker account in cash is the most important thing as a trader and longevity in trading is only achieved if you trade with a TRADE PLAN and with good RISK MANAGEMENT knowing what your RISK TOLERANCES are.
My trade would therefore be:
EUR/USD
Short from 1.3150
Stop at 1.3200
Limit 1.3010
(PLEASE NOTE MY CAVEATS IN THE ARTICLE)
Scott Pickering
The Pip Accumulator
EUR/USD – BREAKS LOWER TARGETING 1.3100 and below to 1.3000
Further to my articles regarding the EUR/USD consolidating around 1.3175 – 1.3200, we have now seen a significant break lower.
It is important for “newbie” traders not to sucked into to chasing this pair lower whilst it hovers just above key support of 1.3100.
Whilst I am of the opinion if you shorted this pair closed your eyes are re-opened them in three/four months time you would be very happy with the result, however it is always a sound trade if you can enter at the best price possible. Currency pairs DO NOT move in straight lines, they will bounce around.
I am personally looking to enter short on a pullback to 1.3150 targeting below 1.3100.
The caveat to bear in mind with this pair is that the ECB has its interest rate decision and Mario Draghi’s Press Conference this Thursday 4th September 2014. Whatever happens, I do not want to be in any position containing the EUR on Thursday. To be in any position for such a high-risk news event is in my opinion poor RISK MANAGEMENT.
The market is expecting that the ECB will announce further easing, if they do not I am expecting the GAP from two Sundays open two weeks ago to be the target for EUR/USD at 1.3250 to be filled.
Should the EUR/USD collapse (unlikely) between now and Thursday’s Press Conference, and my trade has triggered I may stay short but take profits off the table and Have my stop at break even. To me this is good RISK MANAGEMENT.
Remember to keep your broker account in cash is the most important thing as a trader and longevity in trading is only achieved if you trade with a TRADE PLAN and with good RISK MANAGEMENT knowing what your RISK TOLERANCES are.
My trade would therefore be:
EUR/USD
Short from 1.3150
Stop at 1.3200
Limit 1.3010
(PLEASE NOTE MY CAVEATS IN THE ARTICLE)
Scott Pickering
The Pip Accumulator
