The EURUSD peeked above its Asian high as the U.K. session got underway and quickly reversed with a bearish engulfing candle back to trend. A short was taken risking 20 pips for a potential 68 pips to our daily target at 1.1584. Price moved down to test its Asian session low and yesterday’s low before descending further. With lower wicks forming on the candles, we tightened our profit stop further to just above the high of each previous candle and it was hit before the U.S. open and a further move down to our daily target.
The commodity pairs were also simultaneously hit with a temporary buying spike. This is the reason for locking in profits as the market moves in our favour…especially if long wicks are forming. Keep in mind that news can come into the market and cause a complete reversal and hit deep stops.
Good luck with your trading!
