EURUSD Short – Trade Conclusion

The trade I posted earlier has now hit target for a 2.1% gain (risking 1%), but not before retracing and testing the daily pivot line twice which then effectively became a double top, reinforcing the short bias.

60 Minute Chart of EURUSD

EURUSD: Two retracements to Daily Pivot formed a double top before finally breaking short.

The decisiveness of the move was because of the ECB’s press conference in which Draghi hinted that Euro Zone minimum bid rate, while being kept at 0.75%, hadn’t been a straightforward decision for the board which means there’s a chance it will be lowered in the near future.

Anyway, as I said before, the entry from the 60 minute chart was a bit riskier than the 240 minute entry which I’ve highlighted below.

The 4 Hour Chart of EURUSD

EURUSD 240 Minute Chart: A more conservative entry.

The entry was to wait for a break of the trendline, wait for a retest and enter if that retest failed – highlighted here with the gold dashed line. I would have put the stop loss 55 pips away, above the previous high, and if you were in that trade you’d be about 1% in profit now.

The trade’s probably got further to go, but I’m away from the screen now until Monday and what with NFP tomorrow, I’d rather take the money!

Have a good weekend.

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About TheDayTrader

My name is Adam. I'm a day trader. I've been trading full time, mostly Forex but stocks and indices too since 2009 and I love it. When I'm not trading, I'm writing about trading here and for trading magazines, learning to fly and enjoying country life in the Cotswolds with my wife, dog and chickens.