Short on EURUSD under 1.11 - showing weakness on the daily chart
Updated
I opened this trade on Thursday, March 31st (day before NFP) with a long bias on the dollar, based on the anticipation of continued positive US economic reports and a strong recovery of the US economy and the expectation for additional rate hikes in the months to come. Keeping in mind the possible negative NFP numbers could stop me out for a small risk on this trade of 50 pips.
My entry was shortly after a bearish engulfing that I liked around key levels of previous resistance at 1.11. After the bearish engulfing, I waited for a short pullback to enter.
Once I spotted the bearish engulfing, I looked to smaller timeframes for a pullback entry.
On the 2 hour chart, there was a bullish pinbar, followed by a strong rejection of the 1.11-1.1120 level which confirmed my short bias. I pulled the trigger on the two hour timeframe for a short entry at 1.10899.
NFP news was mixed. With lower than expected jobs added, but also lower than expected unemployment and average hourly earnings. I also liked the fact that we had a +50K correction to the Feb jobs report, which brings us overall closer to the expected jobs increase. I decided to keep the position on, since I believed the overall report to be positive for the dollar.
I will post future updates below..
My entry was shortly after a bearish engulfing that I liked around key levels of previous resistance at 1.11. After the bearish engulfing, I waited for a short pullback to enter.
Once I spotted the bearish engulfing, I looked to smaller timeframes for a pullback entry.
On the 2 hour chart, there was a bullish pinbar, followed by a strong rejection of the 1.11-1.1120 level which confirmed my short bias. I pulled the trigger on the two hour timeframe for a short entry at 1.10899.
NFP news was mixed. With lower than expected jobs added, but also lower than expected unemployment and average hourly earnings. I also liked the fact that we had a +50K correction to the Feb jobs report, which brings us overall closer to the expected jobs increase. I decided to keep the position on, since I believed the overall report to be positive for the dollar.
I will post future updates below..
Trade active
Initial target is around the 1.0950 - 1.0975 level. From there, I will most likely move my stops to lock in 40-50 pips, based on the previous high's structure. There's potential for a large slip down to 1.09 or 1.0850 if the 1.0960 level breaks so I will look to how price reacts around this zone before decided to continue to trail stops further or not.Trade active
Partially closed 2/3 of my position for +120 pips at 1.0969. This was a little bit larger position size, so I want to be defensive in my positioning from here, while still keeping the remaining 1/3 of my position open and will trail stops further from here. I will trail stops to either the 23.6% or 38.2% fib retracement levels of the most recent decline, depending on how price reacts around these levels.
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