EUR/USD
- Thread starter KrispyKreme50
- Start date
EUR just took another dump on rumor of more worldwide debt issues - specifically Dubai's debt. I've got a 1.2561 print at 0502 EDT. Dropped from 1.2677 at 0333 EDT.
I had a limit order to cover some of my EUR short at 1.2551; I pulled it for now - I want to see if this stabilizes in the 1.2580s or continues to push lower. I'm heavily short EUR and want to lighten up going into the weekend.
I had a limit order to cover some of my EUR short at 1.2551; I pulled it for now - I want to see if this stabilizes in the 1.2580s or continues to push lower. I'm heavily short EUR and want to lighten up going into the weekend.
expect more downward pressure today.
Yeah, that's what I'm expecting - it looks like a pause in the 1.258-1.2595 range before pressing lower.
I'm currently levered at 11.5:1 and want to cover enough to get that down to 5:1 before the weekend. I'll lever back up to ~13:1 on Sunday night barring unusual circumstances.
I'll put in a limit order to cover some at ~1.2501; I'd expect quite a bit of resistance down there.
Quote from speres:
what session would that be
Which EUR are you watching? The one I'm trading has pretty much been monodirectional in the short term since Monday afternoon EDT, continuing the long term trend that it's been in since December.
Not sure I understand your question. My only current investment - absolutely zero diversification - is that I'm short the EUR.
While there's a lot of risk involved with lack of diversification, I've found that it maximizes profits and allows you to close a position rapidly if it turns against you.
As an example, I shorted the EUR Sunday night in several chunks in the 1.2916 to 1.29455 range , exited rapidly in the middle of the night at 1.292 when it became obvious that there was a decent EUR rally underway. When I saw the short covering rally end on Monday, I sold several chunks in the 1.2896 to 1.2920 range. I've added to my shorts during the week as the EUR moved down and have an average basis of 1.27895.
Today I started to get smaller, scaling back my position by 1/6th at 1.2519 this afternoon. I'm currently levered at 9:1; too high to take into the weekend. I'll get it down to ~5:1 before close on Friday.
It's a very aggressive strategy but the EUR is in freefall; this is a rare event. It also requires constant monitoring; I wake up every hour or two during the night. In a volitile market like this, you'll likely get pip'd out if you have stops that are less than 100 pips so I don't use stops - my risk is if an event happens when the Asian markets are open, as that's when I sleep.
I had been hoping that the GBP would hold up until the EUR fully imploded, but now it looks like I might have to split my resources between a EUR and GBP short. I don't like doing that, because then I'll have to check the news for both currencies. I check the news every few minutes and am always 'on' and monitoring from Sunday night to Friday afternoon. I'm always in the 'sell' mode, willing to dump all of my short at a moment's notice.