Jan 7 2009 EUR/USD Trade Setup

Before I begin with tomorrows trade talk,  I will show my results from yesterday. I still have one lot open which was opened on Monday short at 1.3820. It is currently at +272 pips.

I sold Short 3 lots 1.3520

  • 1st lot I sold short and took profit at +55 pips
  • 2nd lot I sold Short and took profit at +100 pips
  • 3rd lot I did not set a limit as I was going to let the trade run. However it came back up to the original price and I had the stop set at +14 so I got +14

Total for the day was +169 pips

Jan 7 Trade Setup

The down trend may stop at bottom support level that was hit today at 1.3310.  We may see the price begin to rise at these levels. The reason I say that is because we have hit the .618 Fibonacci level that came off of the Eur/Usd high of 1.4700 so we may go back up to the 1.4700 level.

However the daily trend is still down so we could also retest the lows around the 1.2500 level. Right now we must watch the market and let the market tell us what it will do. Then we will enter at that time.

Since I do not know which way the market is headed from here.  I will enter short if the price drops below support at 1.3310 or enter long if the market goes above resistance at 1.3661

Pay close attention to that downward trend line, if that breaks we could be headed back up.

Trade Setups

Setup1 Long

* Enter Long at 1.3675 Buy 3 lots
* 1st Lot set Limit at +55 Pips at 1.3730 Stop at 55 pips 1.3620
* 2nd lot set at +100 pips at 1.3775 Stop at 75 pips at 1.3600
* 3rd lot with no Limit and 210 pip trailing stop

Setup Short

* Enter Short at 1.3300
* 1st lot set at +55 pips 1.3245 Stop at 55 pips
* 2nd lot set at +100 at 1.3200 stop at 75 pips
* 3rd lot no limit with a 210 pip trailing stop

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Casey Stubbs is the founder of Winners Edge Trading, which is one of the most widely read forex sites on the web. Winners Edge Trading has trained thousands of people to trade the Forex markets.

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