Trading EUR / AUD - Flat
January 9, 2008 • Use Charts Better
Following up on yesterday’s EUR/AUD long idea, I decided to get flat early this morning at the 1.5815 area.
For the same reasons I should have gotten out of my NZD/JPY trade the other night instead of holding, I didn’t feel comfortable with the weakness showing on the 4-hour chart early this morning. Overnight price action basically flat-lined…not what I would ideally expect to see real buying momentum had carried over from the previous session. Again, my entire approach hinges on momentum and follow through in the near-term…not where will it be days or weeks from now. In that vein, of course it’s possible to see this pair higher based on the current technicals. But I’m not in the business of sticking around in a trade that long to find out…too much event risk exposure that I’m unwilling to deal with.
I’m happy to take the money off the table this time around.
