June 1st, 2010
By: Ashley
It's June 1st, 2010 and time for our Angel Pair Picks!
We have several indications of trades today.
We are showing indications of potential shorts on GBP/USD, AUD/USD, EUR/USD, and USD/JPY. Also, we have indications of potential long trades on the USD/CAD.
The EUR/USD has been bouncing around in a range of a couple of hundred pips. The overall trend over the last week or so has been down, and the current price isn't near the support point around the 1.2100 range yet. So we are going to go short at market with two 1-lot orders. The initial stop loss we will set at 1.2302. For the first lot we are setting a take profit of 1.2110. The second lot won't have a take profit, but we will trail a stop on both orders at around 50 pips.
The GBP/USD is still in an uptrend. Even though we are seeing indication of a short, we are going to pass on this trade. Since we try and concentrate on higher probability trades, taking a short order on a pair that is in a solid uptrend is too risky. If we were to place this order, we might sell on a stop at 1.4600. The initial stop loss would be 1.4740 and a take profit setting near 1.4450.
The USD/JPY pair is another questionable trade. While our indications show a potential short, it has been in a basic uptrend for over a week. Because the last few days have slowed on the up swing, it is possible it is nearing a reversal. We are passing on this trade, but if we were to trade it, we would place a sell stop order at 90.50 with an initial stop loss at 91.80. Our potential take profit would be near 89.90. Wish such a small potential gain with higher risk, we won't be taking this trade.
Finally, the USD/CAD might be a marginal trade. Over the last several days the general trend has been down, which means there could be room for upward movement. Since there was a decent upswing yesterday, the trend could continue, but it could also return to its downward movement of the past few days. We are passing on this trade as well, but if we were to trade this, we would enter at Market with a stop loss set at 1.0570. The take profit setting would be 1.0425. Notice the stop loss is only about 10-20 pips. It is too close and may get stopped out early. This is another reason we are passing on the trade.
Check back tomorrow for more Angel Pair Picks and our trade review! Let us know how YOUR trading is doing!
|
Pair
|
Order
|
Entry
|
Stop Loss
|
Take Profit
|
|---|---|---|---|---|
| EUR/USD | Sell | Market | 1.2302 | 1.2110 (50) |
| GBP/USD | Sell Stop | 1.4600 | 1.4740 | 1.4450 |
|
USD/JPY
|
Sell Stop
|
90.50 |
91.80
|
89.90
|
| USD/CAD | Buy | Market | 1.0570 | 1.0425 |
IMPORTANT NOTE: These are not Forex picks nor Forex recommendations. This information is provided for educational and informational purposes only. Use this information at your own risk. You MUST apply your own trading methods and your own opinions to an Angel Pair Pick to determine if a trade should be considered. Also, you do not need to trade all of the Angel Pair Pick pairs, nor should you. There's no need to place more than a few trades on any given day and our recommendation is when you get to 6 open positions, don't add any more trades until one of them is closed out.
Note: Forex, futures, stock, and options trading is not appropriate for everyone. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can guarantee profits or ensure freedom from losses. No representation or implication is being made that using Angel Pair Picks will generate profits or ensure freedom from losses.
