What now after the announcement of the LTRO and Bernanke? Clearly it has taken some steam out of the E$ and left many of us wondering the fate of this currency. Is the past weeks' bull run over and are we heading back to 1.2000?
I wish to think that we are in the Skepticism stage of the bull trend..... my view has not changed as long as certain technical considerations are not compromised yet. Guess it would have been a whole lot easier if the E$ had closed stronger for February. But wouldn't that have quickly changed the sentiment overnight? Tell-tales like this would suggest to me that E$ may want to probe for a stronger support level and consolidate before it springs itself to the next step, which is into the 1.35-37 band.
Past 24hrs price action suggests that E$ is still trying to find bottom amid bullish divergence signals emerging. That being said, I am mentally prepared for another leg towards 1.3230/60 before a meaningful rebound. Coincidentally, I gathered that there is a pocket of stop loss orders below 1.3250. 1.3330/40 to cap during Asian hours.
For the next 48 trading hrs, I see E$ consolidate between 1.3230/60-1.3390/410 with choppy price actions. No major breakout expected.
I took a small loss on my long E$ amid the uncertainty but am holding on to my tiny long EURCAD for now. But would like to re-establish long E$ if level is reached today probably during European/NY hours. Meantime, going for some guerrilla warfare trading :)
Strategy for the day: Risk/Reward favours buying on dips.
All the best and have a great weekend.
Update1: Covered the short E$ at current 1.3255 and await lower 1.3160/80 for the bounce.
Gathered there are more stop loss orders down to 1.3320 and 1.3280.
Update2: Cut long EURCAD @ 1.3075 and turned short for 1.2980.
Update3: Went small short on NZDCAD for 0.8100. Staying nimble on all positions!
Past 24hrs price action suggests that E$ is still trying to find bottom amid bullish divergence signals emerging. That being said, I am mentally prepared for another leg towards 1.3230/60 before a meaningful rebound. Coincidentally, I gathered that there is a pocket of stop loss orders below 1.3250. 1.3330/40 to cap during Asian hours.
For the next 48 trading hrs, I see E$ consolidate between 1.3230/60-1.3390/410 with choppy price actions. No major breakout expected.
I took a small loss on my long E$ amid the uncertainty but am holding on to my tiny long EURCAD for now. But would like to re-establish long E$ if level is reached today probably during European/NY hours. Meantime, going for some guerrilla warfare trading :)
Strategy for the day: Risk/Reward favours buying on dips.
All the best and have a great weekend.
Update1: Covered the short E$ at current 1.3255 and await lower 1.3160/80 for the bounce.
Gathered there are more stop loss orders down to 1.3320 and 1.3280.
Update2: Cut long EURCAD @ 1.3075 and turned short for 1.2980.
Update3: Went small short on NZDCAD for 0.8100. Staying nimble on all positions!
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