USD’s basket was showing some weakness and looking at the hourly chart, there was a nice head-and-shoulders pattern that had formed. Price had broken the “neck” and rallied a bit, but it only wicked down so it looked weak. NZD on the other hand was mostly basing after a pullback from a multi-day bull run, but had pushed through the top of that base and was in the midst of a pullback.
When I got to this chart, it looked a lot like NZDs basket, in that there was a nice long-term range that had just been broken and price was in a bit of a pullback. I set entry orders on a re-break of the initial resistance area.
Entry – 0.71815
Exit – 0.71790
Not too long after setting my entry order, price pushed up and triggered me into the trade. It slowly pushed up, making it to within 4 pips of 1R, so I moved my stop to break even at that point. I ended up leaving to go to the gym, and when I came out I saw that price dipped a bit, just enough to stop me out for an, essentially, break-even trade. At least it wasn’t a loss.
