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Short-Term Trade On The M6E P&L = +$18.75

Aug. 29, 2014 4:40 AM ET
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lee01wsk's Blog
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Here's a short-term trade in Euro.

Entry: Buy 1 @ 1.3170

Exit: Sell @ 1.3185

P&L: +$18.75

I was looking at the /6E to make trades on the /M6E.

The 6E has been in a strong downtrend especially with the possibility of QE in the Eurozone. I shorted the Euro before the break downward but I exited quickly because I did not have sufficient funds to hold overnight. Ever since, the Euro has been steeply declining and is almost at 52 week lows. There is potential for the Euro to drop further especially if QE does happen. However, I have not done enough fundamental analysis on the Euro to make a clear judgment. Therefore, I chose to make an intra-day trade.

Notice the pop in volume yesterday at 11:00 AM. This indicated that there could be a possible short-term reversal. Because of the strong-downtrend I wanted to close out of my position prior to the close.

I woke up today and found that price was near the 1.3170 level. The prior low before price broke 1.3170 was 1.3172. I wasn't sure that the downtrend was over just yet.

I saw the consolidation with support at 1.3154 and resistance at 1.3120. The entry was either now or later near the bottom. I waited and price action began consolidating at the 1.3165 to 1.3170 level and setup a doji. I bought and put a stop below the support. My exit target was at 1.3200 or 1.3220. It would've been great to see price reach 1.3220 before exiting. However, momentum slowed as time reached the close.

This is my first blog post ever! Please comment and let me know what you think!

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