Euro Short Stopped Out, Trendline Broken

December 8, 2008 19:22 by Jon

Early this morning my EUR/USD short position was stopped out for a loss of 133 pips on each position.  Not the best start to the week, but that's the cost of doing business. 

I had a suspicion that this might be coming after the EUR/USD reversed course late Friday in concert with the Dow rally.  Then Sunday night, EUR/USD opened where it closed on Friday, but basically went straight up, breaking through the nearest down trendline.

So with this loss, I enter my anti-hedge order where I was stopped out at 1.2856, and will get back in if price moves back in my direction.

  • Anti-hedge Short Entry Order: 1.2856
  • Anti-hedge Initial Stoploss: 1.2989

Looking at the EUR/USD 4 hour chart, it looks like the next possible areas of resistance are around 1.2960 and 1.3090 - 1.3100.  I'll be watching to see how it behaves around these price levels.

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Categories: Discretionary Trading
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