Isn't it nerve wrecking that after you reach your profit objective that you have to think about reentering the trade at different level. How do you do this?
Currencies trend but they dont trend in a stright line, They go up, conslidate create negitive divergence go down , see oops we are going the wrong way and go up again.
My long term profit objective for the euro is 1.4000 , now I would be crazy if i just bought euro/USD and expected it to hit 1.4000 it does not happen that way, as long as the pair keeps rising and it comes down less than what it has risen i will be bullish.
Also my idea on re-entering the trade , Sell the pair in an up trend when all the indicators are shouting over bought. and re enter at a retracement of the up trend
Having said that I expect the euro to rally further over the next few day however it may just consolidate a bit before going up again.
Its not the Data but how you use it, History has it that the commecials have won 100% on their extreme positions(in the currecy fututres world) , however you have to bear in mind that when the commercials were net short on the euro, in 2000 it took them 2 months before the up trend could be reversed.
Euro/USD -----> Short
Sell Euro/USd -----> 1.2805-1.2820
Stop Loss --------> 1.2855
Target------------> 1.2624 ( Monthly Piviot level, Resistance tunred support)
AUDUSD -> short at 0.7745 SL @ 0.7781 Target: 0.7592
(Counter trend trade, sell on potential reversal, need to be carefull)
EURJPY -> long at 141.62 SL 141.37 target 142.60
Using the above we are with the following:
Euro/USD Short from : 1.2820. Current 1.2779 : Floating: + 41 pips.
Recomendation: Stay in the trade or book your profits and attept a re-entry of a short position @ 1.2805 with SL of 1.2835, I will be re-entering the trade, I like to have some $ taken to the bank.
AUDUSD short from 0.7745 Current: 0.7735 : Floating + 10 pips
Recomendation : Short term Target at 0.7711 , Do not touch the SL.
EURJPY: Loss of 25 pips
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Trades So far:
Euro/USD: + 41
Eur/Jpy : - 25
I will also post # of lots to trade with an assumption of US$ 10,000 capital. This way if I feel strongly on a particular trade it will reflect in the number of lots.
