Today’s market was always going to be odd with the EU saying they would “prop” up their currency under any circumstances and the UK still not having a new government. The EU’s comment seems a little like a red rag to a bear, excuse the misuse of the phrase. If you tell the world you are willing to pay anything to keep the Euro strong; what are the markets going to do ? Sell it – the Govt’s will bankroll your profits. Read George Soros and the BoE when the UK left the ERM after saying similar things about intervening to keep the Pound strong. Anyway, whatever really but I still see much more short opportunities on the Euro than longs for some time to come.
My trading today ended 2% profitable, so very pleased with the outcome. I believe I got to this conclusion by having a zero tolerance to losses and having patience to wait for my setup to occur. I probably over traded a little as it took me 3 attempts to get a profitable short trade short on EURUSD late on in the session, the first 2 went down for scratch.
My last trade on EURJPY captured me 40pips and was a perfect setup in terms of BRN resistence, price, ema’s and for me most importantly, pattern recognition. Price continued for another +100 pips……so much for the Euro recovering today…..
Take a look at it below :