I thought I was having a hard time getting back in the saddle following vacation, but after watching today's whacky price action I am beginning to think this market is trading like it's have an identity crisis. Take last night's trade for example. We were offering EUR/USD at 1.4940 and twice it approached our sell price before backing off considerably. The first time at 2:40 PM ET it managed a high bid of 1.4935 before pushing 40 points lower, and the second push came to 1.4927 came at 8:00 PM ET. And then after the 1.4927 high the market dumped right down to our final take profit target, about 100 points lower, to 1.4830. Now if my take profit target is met without first triggering our entry, I will cancel the entry because the trade has already played out, and more times than the not the market will trade through the entry price on any retest and trigger the stops. But this morning, the market actually traded to our 1.4940 entry price, but below our 1.4980 stop loss price, and continued lower towards 1.4880. I'm telling you, this is odd price action.



So, those readers who have listened to my rants over the past few years know that I will cancel my entries if my targets are first met, so I did not have the trade on today. If you do have the trade on right now, I would move the stop to breakeven, because I am going to get short small here (around 1.4920), with stops at around 1.4945 for a possible wave 3-of (v) move down to 1.4800. On a push below 1.4880, I will book partial profits and trail stop to breakeven.



Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

Disclaimer
The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.