It's Sunday Night...

Written by Hugh, on July 9th, 2007

Good evening everyone, it’s a new week and new trading opportunities await.

I just printed out my Economic Data Release Calendar for the week and am looking at the news coming out tomorrow. There will be Producer Price Index and retail sales data coming out of England. Some German data may also affect the EUR.

COT data shows divergence with commercials net short in the NZD and net long in the CHF. I won’t really rely on this data until the new numbers come out on Tuesday.

Overall, it’s a quiet night. Probably have to wait for London to kick in to see some action. In my previous Forex trade review, it was a terrible review of the trade and was pretty much useless. This time, I think I do a better job of reviewing the trade.

3:27 a ET – <Limit> S(5) EUR/USD @ 3640, Target 4 @ 3616, Stop @ 3655, Trailing Stop 1 @ 25 pips. An area of strong resistance, sell into upward move. There should be MACD divergence on 15 min chart if price does bounce off the 3640 level.

4:20 a ET – <Limit> S(5) GBP/USD @ 139, Target 4 @ 102, Stop @ 154, TS 1 @ 30 pips. Looking for bounce off resistance.

4:30 a ET – UK numbers come out a little lower than expected. GBP/USD drops 10 pips almost instantly.

4:41 a ET – [Trade 1] Got taken into the GBP/USD trade pretty quickly.

4:42 a ET – [Trade 1] Got stopped out, that was fast! Stopped 5 @ 154 = -75 pips (-$7.50)

These were my levels on this Forex trade - 15 minute chart

Here is a look at this trade on the 1 hour chart

A view from the 4 hour chart

...And the daily currency chart

4:57 a ET – [Trade 2] S(5) AUD/USD @ 8610, Target 4 @ 8587, Stop @ 8629, TS 1 @ 25 pips. Bounce off high.

6:24 a ET – Cancelled EUR limit entry. The market is choppy and I don’t know what to make of it. Letting AUD trade run because it looks like it will take some time to mature.

Post Trade Analysis (GPB): It was a good trade, however I should have taken the long when price came back to test the previous resistance level.

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