The EURO Finaly Capitulated

After a few stop outs early in the week trying to fade strong trends, Friday finally saw the Euro head south after showing signs of faltering.

I got in off the 62% retracement and engulfing candle on 1 hour time frame - I rode it down to the previous low and took out 85 points with a $12 contract. It didn't cover all the stops earlier in week but made up somewhat and bodes well for next week.

I still believe the EURO is due a significant retracement against US given the strong recent uptrend.

I will be looking for break of trend line on 4 hr and entry on retest.

Three Dirty Stop Out in a Row

Fridays bear flag set-up on the GBPUSD proved to be a trap for this trader. Didn't leave me guessing and I got kicked out pretty sharpish.

The Aussie dollar rate rise announcement (or lack of it) coupled with the BoJ statement about monetary policy made for volatile markets - unfortunately i was on the wrong side of them today.

I entered the EUR/JPY short last night on a break of a 15 minute trend looking for a continuation - the market proceeded to crawl sideways. I exited the trade when I got up this morning when the 15min bar closed above the range. In hindsight not a perfect exit strategy - could have more elegantly exited at breakeven later in the morning session.

Then came the dollar yen that broke its 4 hour range yesterday - i waited until it pulled back today to the 62% fib retracement and positioned short. The news from Japan saw USD buying and stopped me out.

So got slapped about a bit today - that said bring on tomorrow.