My trade 3 is still in play...the price has been moving within a tight range yesterday and I am looking for it to break the 1.4200 level. The last two Friday's have seen some big movement due to economic news coupled with low liquidity due to the time of year. Today we have EUR PMI news this morning and then existing home sales and a speech by the Fed chairman Bernanke - the latter has the ability to move the market substantially depending on the words of wisdom he says! I expect volatile trading this afternoon with the Bernanke speech and thus expect a breakout from the tight range - however the market can whipsaw in both directions taking out stops in the process before settling into it's true direction - I will assess my trade before then and maybe close it. In any case I do not hold trades open over the weekend.
I also entered a new trade last night at the top of this small range with a target towards the bottom of the current range. I was essentially averaging up (like I averaged down for trade 2) - this is not good practice and you need to be very confident the market will move your way otherwise you have increased your loss potential to the same currency pair - this is something I will not do often. The trade automatically closed out some moments ago. As I didn't post it here (was too tired!) I will post my Oanda statement as proof of the trade (click for a larger image).
Trade 4
EUR / USD - Short - 20,000 units @ 1.4256 - 100pip hard SL - 2% of capital at risk.
Closed @ 1.4210 / +46pips / +£56.36
You can see the small ranging channel I mentioned above on the 3H chart below...trade 3 i stll in play as I expect a breakout downwards, but in the meantime you can trade the range extremes in both directions quite easily with tight stop losses.
The daily chart shows the bigger picture and what I'm looking for from trade 3 - i.e. a price target towards 1.4100.
