It's been a long time.

Yep. Have not been posting my thoughts on the forex market. Like the experts say .. don't trade when confused or when you are not ready. That's very true.

When you are not mentally prepared to trade, then you are leaving your trades to chance. And chance are that you will lose money. How true too!

Will get back to posting some of my thoughts on the forex markets when I see the current market more clearly.

Stay tuned.

EUR Long entry - Trade Journal

The EUR fell to my predicted retracement levels of 1.2557 and rebounded. Though I missed the perfect entry (as I forgot to place an order to long the EUR at 1.2570), I managed to long the EUR at 1.2584.

As of the time of posting this trade journal, the EUR has closed the week at 1.2835. Not a bad entry, as the EUR has never come near my stop loss since the entry was made.

Have taken partial profit and moved my stop loss to breakeven. For the coming week, could retrace to 1.2720 - 1.2775 regions, before continuing its push to higher levels. Try to look for long entry around this region or if EUR breaks 1.2883. The EUR has potential to reach 1.3200 - 1.3250 regions.

EUR outlook

EUR has dropped below the previous anticipated support level of 1.2700 and now trades around 1.2650 regions, after dropping to a low of 1.2512. On the daily chart, it has forms a doji and then surged up to a high of 1.2759 without breaking 1.2800.

Still holding the view that EUR is bottoming out soon. Recommend to try to find long entry around 62% retracement levels of the range of 1.2512 and 1.2759.

EUR outlook - 16 Feb to 20 Feb 2009

For the past week, EUR has been trading between 1.3093 and 1.2721. On the daily charts, it has been in a consolidation for the past week.

Obama has gotten his stimulus package approved and i think the EUR would respond by moving up, as long as the support at 1.2700 holds. An upward trend would be confirmed if the price manages to break 1.3100.

If the up move is confirmed, then the projected target would be 1.3500 regions.

Testing times for EURlong traders

EUR has been testing the patience of long traders for the past few weeks. The EUR has been making new lows and I am one of those long traders who got knocked out of my trades, each time I went long on retracements. Thankfully I had my stop loss to limit my losses.

EUR dropped to a low of 1.2706 today (2 Feb), and bounced up to trade around 1.2826 (as I type this blog). I am currently long on the EUR when it triggered my long order at 1.2805.

Should the low of 1.2706 holds, we should see the EUR rise up to around 1.3350 to test the last resistance (pincer top).

It's been a while ...

since I last traded in Dec 08. Not that I have stopped. It is just that due to all the holidays, the market has been either flat or unpredictable. Hence I chose to stay out of the market.

Now that 2009 has arrived, I will be looking forward to getting more profitable trades under my belt and I hope to increase my trade size too. As usual, I will try not to rush into any trades, but to wait patiently for the trade opportunity to present itself.

Wishing all FX traders a Happy Pipping Year ahead !!!