Long Term-Eur/Usd Setup-19th Feb ‘09

POSTED BY Seeni on Mar 23 under Forex, Trade Results

Almost a month ago, i did a study on the Eur/Usd pair, on a longer term analysis. As traders, i feel that we are caught in the everyday gameplan to make more pips that we often lose focus of the bigger picture and stronger, overall trends. Which is why, i make it a habit to analyse most pairs on a weekly or at least fortnightly basis to get a “feel” of the overall directional flows.

In my study, i opined that the E/U had found a nice bottom and it might start a short bull rally soon, at least to re-test 1.30 area and eventually the 1.40(.3930-40 to be precise). When i had planted the trade, it was a ranging market and i had started around 1.269 price level. Because i had planned for it to atleast reach 1.23 on the downside. I was therefore conservative with my lot placement.

Unfortunately, it went to the downside still, where i added another lot at 1.258 level. From then on, the trade started working out beautifully. It had tested resistance at 1.30 level several times, where i had scaled out my profits. Leaving only 2/3 of my original lot size to run. Once it break the 1.30 level, it easily shot up(thanks to FOMC) and some strong risk appetite in the market, it is now resting at 1.3670 level. Slightly below the 38.2 fib level.

On both my positions open i have scaled out again, leaving only 0.2 lots open for profits of;
1) Long E/U – Opened 1.2684 – Now 1.3669 – 985 pips profit
2) Long E/U – Opened 1.2576 – Now 1.3669 – 1093 pips profit

This trade has taken almost more than 1 month now to materialize. It takes patience, a strict plan you stick to and has worked out rather nicely, god bless. I am still holding on till the next fib level is tested and will exit when i see clear reversal or 1.40 level tested.

Hope you liked this note, please leave me a comment.