Stopped out of EUR/USD

Got stopped out of EUR/USD trade for a loss of -115 pips

Market went up to 1.4210, took out my stop, and then dropped by 120 pips. WTF???

Now that I think about it, that was a bad place to put a stop. I need to get in a habit of picking good stops based on support/resistance levels instead of putting arbitrary stop/exits at round numbers like 1.4200. The next big resistance was at 1.4239, so a stop above that would have been better.




Night UPDATE (10:30 PM PDT):

It looks like it was a good thing that I got stopped out this morning, because EUR/USD has broken out of the hourly down trend line and has now rallied above the 1.4239. Next big resistance is at 1.4340 which is the 38% fib retracement from the top made in early May.

Dollar is back on the defensive again, with risk carry trade back on. I am still in sell the rallies modes, but thinking about stepping back a little bit and letting this market settle down from the recent big sell-off. Many of the markets look oversold on the short term charts, so they are susceptible to sharp bounces.