Trend for 8th of September (updated) ~ blogs for forex trading
Hi, market trend traders. I hope you see how Euro nose dived today. Let me talk about it a little. I also believe that you know what caused this volatility in the markets. Yes, it was fundamental news, as always. This time it was interest rate decision from both European Central bank and Bank of England. Firstly, British guys delivered their decision and after forty five minutes European central bankers did the same. The rest is history as they say.
Now, what interests me is the way one could have traded the event. As you investigate the event more carefully you will see that currencies were moving before the news release. They slowed somewhat before the first and second announcement though. Just in case, you know. This created for opportunities traders to do some news trading and news trading they did. When the news was released lots of limit orders were opened and this caused a huge day trend in the pairs. I particularly liked a move in eur/gbp. If you remember I talked a lot about my expectation for the pair and that it would fall and it did fall. Before the collapse it managed to come back to breakout level of 0.8840.
Today’s event caused it to continue its’ downward trend. So, there was some time before the release to place a sell order below short term support of 0.8780 and wait till the news opened it. Exit level as you may understand was at an even number of 0.8700. Quite a good ride for such a slow mover as eur/gbp! The next stop is at 0.8650 level. Not much left! And nobody knows what happens after that. I told you that I expect a large bearish move in eur/gbp in the coming future. Maybe it is not far away! See you tomorrow!
See also:
Resistance
Follow the leader
Moving average
Disclaimer
Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.
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