Wednesday, August 22, 2012
Quick Euro Trade
The consolidation and thrust on a news event (the Fed), suggest the previous EUR/USD structure is a triangle with the current thrust as the result of that triangle. EWP suggests that once the sharp thrust is over, it will return to near the apex of the preceding triangle. That area is 1.2469. So I'm shorting into this rally, adding more as it surges higher but keeping my overall position manageable since there's no clear risk level to put a stop. I'm just watching it closely. The reversal to 1.2469 should happen soon, within a day.
It will be very interesting to see how the euro and stocks close today. A nice reversal on a Fed announcement is usually a good trading opportunity.
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PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.