ForexSpirit

I had a short in EUR/USD from 1.4295 in play at the time of my last post. Last Friday saw a dip to just under 1.4200 before a rebound unfolded. I didn’t want to hold over the weekend and certainly didn’t want to see a move that had gone 100 pips in my favour turn into a loss. My stop loss was moved down to 1.4285 and I was taken out of the trade to enter the weekend all square.

On Monday we were back near the highs of 1.4350 that had capped the market for the prior two weeks. With my short bias still in play and being at the top part of the recent range I entered a short at 1.4350. Obviously the market had other ideas and we shot off to the upside. The lazy days of summer were at an end and real movement might actually be back. This is especially evident when looking at the gold market which has broken through and closed above $1000 this week.

My short was thus quickly stopped out for a 100 pip loss. The breakout above 1.4400 had me re-evaluate my bias. In turn, I’ve now switched to going long.

This led to two long trades, one on Tuesday at 1.4497 (yes, back to using my birthday point entries for some variety) and the other on Thursday at 1.4522. Both had 50 pip targets which were hit.

Getting above 1.4600 seems to have been a real chore since it was touched on Wednesday. Three days without a sustained break starts to make me wonder if a retracement isn’t on the cards. With that in mind, I’ve entered a short at 1.4578 this morning. If we don’t break below 1.4550 on Monday I’ll be sorely tempted to just close this trade out early.