Euro hitting a resistance level

The 4-hour chart shows the Euro coming quite close to the resistance level at 1.3735.

The previous uptrend, the Euro wasn’t able to break this resistance.

To clarify this, I’m going to zoom into the 1-hour chart. The 1.3711 level seems to be holding up quite well!

I’m going to play this a little differently where I’m going to place an order to sell Euro instead of waiting for a moving average crossover to occur.

Here’s the order I’m going to place.

Sell EUR/USD at 1.3710. Stop loss 1.3750 (40 pips). Target 1.3630 (80 pips).

When spot moves to 1.3670 (40 pips), I will move my stop loss to breakeven at 1.3710.

Update on the Yen!

Ok so this strategy didn’t quite pull through as the yen pulled lower instead so I ended up not receiving a buy confirmation and let this trade go.

strategy link: yen strategy 

Update on Cable short trade!

So price hit 1.6110 and I moved my stop to 1.6160 as planned. Unfortunately price hit a low of 1.6100 and then bounced back while I was snoozing away. So my stop got hit and I ended up with a 50 pips profit.

It is sometimes quite hard to make a decision when it comes down to trailing stops. Should we keep the stops closer so that we cut out on the opportunity cost when market bounces back as in the case of this trade?

Or do we keep the stop a little further in case the stop gets and runs back down on the trend again costing you the opportunity of more pips.

Tough decision! 

Trade link: cable trade