Yesterday it was rather difficult to find the right set-up, EUR/JPY & GBP/JPY were movers but I couldn’t find a satisfactory way in without increasing risk or decreasing lot size, I ended up back at the EUR/GBP. The series of charts show firstly the identification of a consolidation period and the confirmation of a weakening Euro against a slightly stronger GBP on the ‘strength meter’. Not great I admit but I went with it anyway.
I played the breakout, but in retrospect the trade should have been a range trade, entering where I placed my SL. This is a mistake and a point I need to keep an eye on.
Two lots have been traded as usual, and the first now closed out @0.8313 to cover our SL which remains @0.8375. This is now the breakeven point for the trade.
Normally I don’t trade NFP Fridays but I’m in this trade now and the worst case scenario is I’ll get stopped out for zero. It’s 9.00am here in Europe as I write and all the pairs are consolidating for the moment.
Quick update on this one, Euro falling again now down in the 1.20′s which is pulling our trade down much more than Sterling is pushing. Sterling is also suffering from the Dollar Yen buying. This is good news for the trade which is maturing nicely in the right direction.
NFP is about to hit as I type so lets see what we get there………..
Ok not as good as expected, but still a good figure, unemployment down to 9.7% . I’m hanging on for the moment to see what the big money are going to do once they have crunched the numbers, if anything, and probably bring the SL up again to 8290 (+50pips) and leave it to sort itself out.
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