EURUSD 1-14-07

1-14-07

EURUSD

The EURUSD long trade on a pullback to 1.2900 was entered on Friday morning twice. The first trade was stopped out for a 10 pip loss after entry, and the second trade was partially exited at the first target of 1.2932. The stop loss on the remaining position is at 1.2898 which is 20 pips behind the closing price of 1.2918. The 1.2957 second target is where I plan to exit half of the position. For the time being, I expect the EURUSD to trade in a big range between 1.3000 and 1.2870 while the US Dollar Index trades in a range between $85.40 and $84.00. The spike down to the 1.2870 area would have been a better entry based on the 240 minute chart. There is also a daily area of demand at 1.2850 which is the area I next plan to enter long if the EURUSD continues lower. Both the US Dollar Index and the EURO have fresh areas of supply and demand to trade between.