Instrument: EURUSD
Trade Type: Long
Timeframe: [4HR]
Entry Price: [1.11310]
Stop Loss (SL): [1.11144]
Take Profit (TP): [N/A]
Risk-Reward Ratio: Unknown
Outcome: Stopped out
Entry/Analysis:
I entered a long trade on EUR/USD at 1.11310 after noticing multiple wick rejections to the downside. These rejections indicated a solid support area, leading me to anticipate a bullish continuation. My bias was further supported by a bullish candle push from the support zone, which I believed signaled potential momentum to the upside. Additionally, I based this decision on the strong upward price movement seen toward the end of last week, expecting the trend to carry forward.
Exit/Outcome:
While my technical setup aligned, it is now clear that external macroeconomic factors heavily influenced price action. Negative data from the Eurozone, including weaker-than-expected German industrial production and the ZEW Economic Sentiment Index, pointed to declining economic optimism, which ultimately weakened the euro. Additionally, weaker Chinese economic reports and disappointing U.S. retail sales contributed to a shift in market sentiment, favoring the U.S. dollar.
Despite the initial bullish push from the support zone, price failed to gain further momentum and reversed sharply, hitting my stop loss. The market’s failure to hold above the support area indicated that the bullish sentiment was short-lived, likely due to the weak fundamental data weighing on the euro.
EUR/USD faced strong headwinds from broader economic concerns. The pullback that stopped me out coincided with negative Eurozone data and heightened uncertainty surrounding U.S. debt ceiling talks, contributing to reduced risk appetite and strengthening the U.S. dollar
Psychology:
This trade was part of a longer losing streak, which has tested my emotional resilience. Naturally, I felt frustration after being stopped out, especially when I had a sound technical setup. However, I took the time to focus on my breathing exercises and remained mindful of my emotional state. Staying calm allowed me to maintain discipline and prevented emotional decision-making. I reminded myself that losses are part of trading, and it’s important to accept the outcome rather than reacting impulsively. Despite the frustration, I’ve continued to trust my strategy. This trade reinforces the importance of factoring in broader market sentiment and economic data when executing trades. Moving forward, I will balance my technical analysis with a more comprehensive understanding of macroeconomic factors, aiming to improve my entry timing during volatile periods.
- Remain disciplined and continue refining my technical setups.
- Pay closer attention to macroeconomic data before entering trades, especially during times of uncertainty.
- Continue practicing mindfulness to manage stress and maintain clarity during trading.
Trade Rating:
Execution: 2/3
Psychology: 3/3
Overall trade: 5/6
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