Wednesday, June 16, 2010

Trade No. 3: Update 2

So Monday I told you that I'd start getting worried when the EurUsd closed above the 21-day EMA. On Tuesday, the EurUsd closed at 1.2332. That's 57 pips above the 21-day EMA. My plan was to sell at Wednesday's close if the close was again above the 21-day EMA. On Wednesday the EurUsd closed at 1.2309. Again above the 21-day EMA, this time by 31 pips. I didn't sell.

You will notice that the EurUsd closed down some 26 pips. I thought that the EurUsd's steam was probably running out and that the downtrend would continue. Maybe I am looking for excuses to not close this trade and not have to deal with the huge loss. Maybe the steam is running out. Only one way to find out...

I trade the 5-minute chart. The EurUsd seemed to be running out of steam there, so I looked to a few higher time frames for confirmation. While they didn't scream "short the Euro", they did suggest that this 90 pip gain per day is slowing down. Thus, I am holding to a position currently down 346 pips.

No comments:

Post a Comment