Wednesday, January 19, 2011

EUR/USD broke through 1.34, is 1.35 next?

I made 35 pips last night, entering a long position as soon as the EUR/USD broke through the psychological level of 1.34. Unfortunately I set my stop loss too tight on this one, I sold the pair at 1.3433. At one point it went well over 1.35. A common issue I experience in trading Forex, skit outs under my tight stop loss level and I'm out well over 70 pips. Next trade a little looser perhaps? Although I have a guaranteed profit of 30+ pips, it still painful to watch on 'what could have been' a 100 pip profitable trade.

Last night I decided to go long this pair as soon as there was a breakout above 1.34. No other technical indicators or oscillators had to confirm this. The question now is, will the pair continue its uptrend towards 1.35? Looking at the chart I think there is a good chance it will. I'm keeping a close eye on this pair, soon entering another long position with a target of 1.3550 and a greater stop loss of 20 pips. Any input of where you think this pair is headed to?

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