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Thursday, November 8, 2012

EURUSD is bearish

I longed EURUSD futures about the mid of Oct.  My Stop loss was triggered this past monday.  Cutting losses is part of parcel of trading.  The age-old maxim - cut your losses short, let your winners run - is one of the key cornerstones of my trading strategy.
EURUSD futures is turning very bearish on my chart.  It is fortunate that I have my mechanical stop loss order.   Look at the daily time frame on the right.  Yesterday, it seemed to have broken down from a triple top, heading toward 1.2600.
Looking at the weekly chart on the left, the last candle has broken through the 13SMA, with all 3 momentum indicators indicating downward momentum.  Looks like a short is in order.
It is indeed ironical that the 3 month high of 1.3179 was reached on 13 Sept - the day that the fed declared QE3.  Now you know why trading on news alone is not enough.

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