This coming Thursday we have the news that we've all been waiting for which is the ECB Press Conference to talk about QE and the Rate Decision and the markets have been looking for any hints that they can get on how to position itself for the upcoming move.
As a technical trader, I don't look to involve myself in these types of moves due to the fact that the initial fundamental reaction can often throw off the edge gained by the technicals and the markets will often bounce around on greed and fear before working it's way to its final location.
But for those who are looking to short the reaction to yesterday's rally, I would encourage you to be careful, at least at this initial level of structure (1.116's) as we have a higher level of structure right on top of it (1.17's).
Dual levels like this often work as a trap, as newer traders tend to place stop losses beyond the 1st level, but not the 2nd, providing the real sellers an opportunity to find liquidy at the level they're interested in since all of those "buy stops" are resting above.
So be careful...or better said, be smart about how you handle selling at this level. A conservative approach may be the difference between you finding a good trade and losing unnecessary funds.
Akil Stokes
"Glad You Loved My Shirt Yesterday as i think it speaks for all of us!...and if you were offended, what does that say about you?"
As a technical trader, I don't look to involve myself in these types of moves due to the fact that the initial fundamental reaction can often throw off the edge gained by the technicals and the markets will often bounce around on greed and fear before working it's way to its final location.
But for those who are looking to short the reaction to yesterday's rally, I would encourage you to be careful, at least at this initial level of structure (1.116's) as we have a higher level of structure right on top of it (1.17's).
Dual levels like this often work as a trap, as newer traders tend to place stop losses beyond the 1st level, but not the 2nd, providing the real sellers an opportunity to find liquidy at the level they're interested in since all of those "buy stops" are resting above.
So be careful...or better said, be smart about how you handle selling at this level. A conservative approach may be the difference between you finding a good trade and losing unnecessary funds.
Akil Stokes
"Glad You Loved My Shirt Yesterday as i think it speaks for all of us!...and if you were offended, what does that say about you?"
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