Earlier today a story from Associated Press hit the wires screaming “Oil rises on strengthening dollar”. O.K., time out here. Until today press was linking oil rise to weakness in dollar, or the other way around. Now it is the opposite. Have I buried my head in Forex charts so deep, that I don’t notice anything else? Or are the journalist running out of ideas on how to explain something or other in financial markets? As far as we have seen over last few years oil was rising when dollar got weaker and vice verse. But what do I know? With the weather as it is, I might have had a brain freeze and become slow witted. In real news, BoJ cut interest rates from 0.3% to 0.1% and is know neck to neck with FED in a race to zero(%). Yen got stronger on the news once again.
Euro, on the other hand, had a significant slide. Finally, my persistence in trying to sell EUR-GBP produced results.
My entry was at 0.9367, with 80 pips objective, which was reached, if barely. Trade was twice the size of preceding ones, so the gain was decent. From now on I’ll track 4H charts and try to sell a leg down on that time frame.
Trade mentioned yesterday, long AUD-CHF was initiated.
As is the case with most breakouts, price retreated back into “staging area”. So far this move doesn’t look all that evil, so I stay in trade for now. In all frankness, though, it would be better to place the buy order now at around 0.7630.
Euro looked really weak earlier and there was fairly long sideways movement in EUR-USD. I considered that an excellent opportunity to short.
When the break finally came, it produced 100 pips very quickly, in few minutes. And yes, I also trade the majors, but try to focus on crosses in this blog. I explained that in numerous posts before. Altogether, it has been a good week. Time to rest.
Mike K.
So,Mike, you finally nailed the EUR-GBP short. Did I understand it correctly, you are going to look for more trades to down side on larger timeframes?
Yes, I will see if there is anything forming on 4H and daily charts, but this might take a little while. Besides, we don’t know if this is a top yet. So far there was only a small reversal on short term chart.
I for one hope this is it for EUR-GBP. My oversized short position makes me miserable.
Problem with calling it a long term top here is the fact that EUR-GBP is at all time high- uncharted territory. There is no additional clues like resistance, previous tops/bottoms. It is always difficult in this cases.
You are right about not choosing an arbitrary level for a top here. Trail your sell orders and you will catch it. Patience is the key, and you are doing just fine, Mike
[...] This is confusing. | fxmadness.com fxmadness.com/2008/12/19/general/this-is-confusing – view page – cached This blog goes where few traders dare – the exciting world of Forex outside the [...]