I wanted post an update on the Euro positions I've had open recently.  One has been profitable for me, and the other not so much.

First with the bad...

The EUR/USD short position I took after the pair broke the rising trendline was stopped out on Friday when the pair retraced back above the trendline.  I took a -115 pip hit on both halves of that position.  In the words of Forrest Gump, "that's all I got to say about that."

Now for the good...

The EUR/GBP short I took initially moved in my favor but then retraced and waffled around my entry price for a bit.  Sunday evening I'd had enough and tightened my stop to just above the high for the day.  Overnight Sunday and into Monday morning, the pair began to move lower, and I was able to bank half of my position at 1R for 167 pips.  The other half of my EUR/GBP position is now risk free.

In reviewing my EUR/GBP position tonight, I see a possible low-risk opportunity for adding to my short position shaping up.  The 4 hour chart below shows that we are at the top of a channel, with price giving the appearance of respecting the down trendline.  The overall trend on the daily chart is down, indicated by the top red line.

So, I've entered a sell order just below the low of the current candle on the 4 hour. If price continues to move south, this order will add to my EUR/GBP position.

• Short Entry: 0.8835
• Initial Stoploss: 0.8927

EUR/USD surged this afternoon and is retesting a down trendline on 4 hour chart that has been in place and tested several times in the past month.  The overall trend on the 4 hour and daily charts is still strongly down, so this represents a good low-risk opportunity.  I'll enter a sell stop order below the 2-period low on the 4 hour chart to ensure that price gets moving in my direction before I enter.  My stop will just above the recent high on the 4 hour chart.  A move above this point will represent a change in the medium-term trend, and I'll want to stand aside.

• Short Entry:  1.2718
• Initial Stoploss:  1.2860

USD/CAD is hanging around a rising trendline that has served as support for the pair in the past. The daily chart below shows the trend beginning in early November last year, with it testing the trend line in February and a couple of times in March, and now again for the second time in April. I'm going to put a buy limit order ten pips above today's high. I like these kind of setups because they're low-risk, since the logical place for my stop is just below the trendline. In this case, my stop will be ten pips below Thursday's low. Most times that I can catch a currency pair reversing at a point of support or resistance, I will look for a low-risk entry on a break the opposite way, with my stop just beyond the area of support or resistance. I prefer this to trying to catch a breakout, because I can use a stop that's closer to my entry.

I should probably clarify what I mean by "low-risk" in this case. I size my positions relative to how far my initial stop is from my entry point. So I'll risk the same amount of my account on a trade where my initial stop is 300 pips away from my entry versus a trade where my initial stop is only 100 pips away; I'll just use a smaller position on the trade with the 300 point stop. So, technically, all of my trades carry roughly the same amount of risk. This particular trade is a "low-risk" trade for me in the sense that since my profit targets are multiples of R (my initial risk), if my initial risk is a small amount of pips, then the currency pair doesn't have to travel as far in my direction for my profit targets to be hit as it would if my initial risk was larger.  So, with that said, we'll see what happens on this one.

• Order = Buy Limit
• Limit Price = 1.01048 (10 pips below today's low)
• Stop Loss = 0.99780 (10 pips above recent high)
• 1st Profit Target = 1.01682 (1/2R)
• 2nd Profit Target = 1.02316 (1R)
• 3rd Profit Target = Let it ride

Also, by the way, not much action today on the other pairs I watch, except for GBP/USD which dropped like a rock back to the trendline that it broke out of last Thursday.