Regular readers know my EUR/USD straddle setup is one of my favorite low risk trades. Today’s straddle opportunity that devloped over the course of almost 8 hours with the EUR/USD trading in an 18 pip range was particularly unique and illustrates the value of patience.
It’s unuusal to see the EUR/USD basically go flatline after only 90 minutes into the US equities market open but that’s what happened. After 2 quick scalps right after the open I locked into a Long position at 16:25 with a 15 pip trailing stop that never fired. On Friday I posited a bullish Monday based on the extraordinary POMO scheduled for today and Tuesday and the likely carry through to the EUR/USD. The US market did prove to be a disappointment in that regard but my conviction that the POMO fundamentals would eventually drive the markets higher finally did play out dead on 1:00 as the the EUR surged 60 pips in 30 minutes. The fact that I was in front of the screen during this move was pure serendipity and once price got to R3 I automatically closed the position for a nice 53 pip gain. Sometimes Santa comes early.
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