Live Trade – EUR/USD (Latest Update)

Filed under: Live Trades |

Although it was a bank holiday in the UK yesterday, the forex markets were open and as such, there has been some more action on the open trade that I have on the EUR/USD pair, and I would like to talk you through these latest developments.

 

Figure 1.

Figure 1.

Just to recap, we had entered this market at a 50% retracement of the bearish pin bar at the top of the chart (see Figure 1), which came at a strong area of support/resistance, and since then, the market has moved in our favour.

 

I have now moved the stop loss three times on this trade. The first was a move to breakeven after the long bearish candle, to protect our capital and ensure a risk-free trade. Then, I moved the stop to a few pips above the high of the next, slightly bullish candle, and yesterday, there was yet another bearish candle, and I have moved my stop loss again to just a few pips above this candle. The key thing here is that all of the last three candles have had lower highs, and we are looking for that to continue.

 

I remain very bearish on this pair, and the candles do tell a narrative that, if listened to, can help you to manage your trades effectively. The pin bar told us that the chances of a market turn were raised, the long bearish candle told us that the market sentiment had turned, and that the bears were firmly in control. The next bullish candle told us that the bulls had tried to wrestle control and had gained some ground, only for the bears to fight back (evident with the long upper shadow on this candle), and finally, the next smaller bearish candle tells us that the bears are back in control. We will see how this one develop further today…

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