On Friday, Sept. 21, I had a trade recommendation out on the EURUSD. The trade was:
Entry 1.2850
S/L 1.2650
T/P 1.3150
The entry was hit on 9/26. From then, we rallied to 1.3070 on Friday after the much better than expected US data. However, stocks stalled by the end of the day and the EURUSD closed at 1.3045. On Sunday at 9:07 PM, I Tweeted out to cut the position in half (around 1.3025) and to raise the stop to our entry point at 1.2850. I apologize for having to put out information via Twitter, but this is the most efficient way to communicate when I see events shifting and need to relay that information. As most currency followers know, events change rapidly and therefore you must adjust in a similar fashion. For the position, we now have a risk free trade with a guaranteed profit on 50% of the position.
Also, last week, I put out this trade for EURJPY based on the Bank of Japan meeting:
Buy EURJPY
Entry 101.50 (102.00 aggressive)
S/L 99.50
T/P 107.50
The concept was to go long EUR ag JPY with the potential for a move by the Bank of Japan to institute a Swiss National Bank-like intervention structure. This would mean that the BOJ would put a floor in for the EURJPY at 100.00 similar to the EURCHF floor at 1.2000. Subsequently, this structure didn’t manifest and therefore the main reason why we recommended this trade. While I believe the BOJ will need to act on the currency soon, clearly they didn’t take this meeting to do so. Therefore, you have two choices.
1. Cut position now with 30 pt loss.
2. Keep position and move stop to below bottom of uptrend channel at 100.25.(see chart below).
