Trading -AUD/USD
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Minus CHF/JPY @ 107.82. Partial. Will decide whether to add, take loss, or take heat if it gets to around 108.20.
Out at 107.40 and 106.95. Should have held until 106.95, but that is hindsight.
Thinking about MINUS eur/usd. It is now @ 1.3432.
After the fact news summary of yesterday's rate cut....
The euro fell the most in two years versus the dollar after the European Central Bank unexpectedly cut its main refinancing rate to a record-low 0.25 percent to boost growth in the 17-member currency region.
Was there anyway to prepare for this type of shakeout before it happens in forex? Were you surprised by the announcement and impact on the markets? In watching dailyfx video news it looks like this caught the trading world flat footed....
Any thoughts or suggestions on how to manage this type of press release?
Thank you
The euro fell the most in two years versus the dollar after the European Central Bank unexpectedly cut its main refinancing rate to a record-low 0.25 percent to boost growth in the 17-member currency region.
Was there anyway to prepare for this type of shakeout before it happens in forex? Were you surprised by the announcement and impact on the markets? In watching dailyfx video news it looks like this caught the trading world flat footed....
Any thoughts or suggestions on how to manage this type of press release?
Thank you
My exit point is dynamic not static, even though I always book the first 20 or 25 pip profit (when the market is slowly moving in my favor) or the first 50 pip profit if the market makes a rather sudden move, like yesterday on the EUR/AUD.
Always put something in your pocket first and let the rest run, then move the stop to break-even.
I believe that people in here are likely to be little capitalized and to get their news from public sources after the event like anyone else. Due to their little capital, I doubt they have any significant concern about being flat footed. If you happen to be in the exception, then I am very happy for you and I would understand why you would be concerned.
Now we take a step back the day before the news. If rate is lowered, then it would mean people would seek shelter somewhere else. That would be mainly in currencies outside of europe (mainly US and Japan, and to some extent Swiss and Britain). Given the report coming in the US this week, it makes Japan a better alternative compared to the US. And given the proximity of Swiss and Britain to europe, Japan appears a better choice. So overall, the Yen in case of a down surprise, would appear to be a better choice. As for the AUD, it just got bad news last night, so people might be concerned.
So under the hypothesis of bad news from europe, the Yen seems to be the likely choice for this news for this week. But this is just an analysis, and like any analysis it could be wrong.
Best wishes!
resting stops to enter all the way down
no cut, you don't get filled
otherwise, you were already there waiting before everybody else could figure out what it would mean
and you can play the other side, no cut and you are resting to buy all the way up
The ECB decision was good for the eur/usd short sellers but the trader should always keep in mind that the trend could reverse at any moment and go the other way.
For example, a close above 1.3450 on the EUR/USD (1h chart) could mean that the "party" is over.
In trading always expect the unexpected and get ready for any possible scenario and counter-scenario.
In fact, always assume that your trade will be a losing trade and prepare yourself accordingly.
For example, a close above 1.3450 on the EUR/USD (1h chart) could mean that the "party" is over.
In trading always expect the unexpected and get ready for any possible scenario and counter-scenario.
In fact, always assume that your trade will be a losing trade and prepare yourself accordingly.