Want to know why I’m taking a long weekend?
- Earlier today the ECB announced a rate cut to 1% from 1.25%. Did you see the impact on the market on the rate cut? It was descent, and we’ll probably see more volatility because of this.
- European Summit. The next following days are extremely important for the European crisis, plenty of decisions need to be taken, and by judging today’s impact of the ECB rate cut, we’ll see more wild moves today and tomorrow.
So let me suggest you, just take the rest of the week off, I’m going to do it.
Are you doing to trade the rest of the week? Let me know.
Please have a great weekend!
ECB, european summit, interest rate
We need to be careful with our NZDCHF & AUDJPY trades because later today, we have the interest rate announcement from the NZD. Although no change is expected, it still could have some impact on our open trades.
I had a trade open in the AUDJPY and closed it around the break even level.
My NZDCHF trade, I’m going to monitor it closely, I’d like to see it trading below 0.6960 before the announcement, otherwise I will close it.
AUDJPY Analysis, interest rate, NZDCHF Analysis, trade update
We got plenty of fundamental announcements for what is left in the week:
Thursday: Interest rate announcements for the Euro and GBP
Friday: Unemployment reports for the USD and CAD
And if it wasn’t enough:
All G7 meeting Friday and Saturday
Its going to be difficult to open a trade tomorrow, I’ll have to close it before the NFP announcement… so I guess I’ll only be watching…
Be careful with these announcements! Don’t put at risk what you have earned following your system.
Fundamental, interest rate, NFP
Earlier this morning both interest rates were released. The ECB and the BOE decided to hold interest rates at 1% and 0.5% respectively, as expected. Still, the market reacted a little on both announcements.
What do you think about your trading so far this week?
For me it has been difficult to find low risk trading opportunities with all these important announcements, yesterday the US interest rate, today the EU and UK interest rates, tomorrow the NFP announcement (probably the most important fundamental announcement). This week was more fundamentally driven than technically driven, and I like to trade based on price action, market sentiment, etc. So probably that is the reason its been kinda difficult… Did you think the same?
Anyway… One more day to go, and this week will be over. I have a feeling next week we’ll find more trading opportunities than usual (most currency pairs are trading at important levels, waiting for tomorrow’s announcements…)
Next week we’ll also be trading in the FREE TRADING ROOM, don’t forget to register.
Fundamental, interest rate
Last week we did post about the possible bullish market condition in the GBPUSD and the GBPJPY. But we also mentioned that the interest rate announcement from the FED could change the sentiment of the market, and it did.
For pairs like the EURUSD where there was a bullish market condition, the market entered into a consolidation period with a bearish bias, and the same happened to the USDCHF (mirroring the EURUSD) was in a bearish market condition, but now it is in a consolidation period with a bullish bias.
For the GBPUSD and the GBPJPY, both of them were in a bullish market condition, but suddenly after the interest announcement the market condition changed the other way around to a bearish market condition. The good news is that we still have some room before the market hits its next long term support level, hope we are able to open position in these two pairs.
We’ll be updating you about the market condition during the week.
EURUSD Analysis, GBPJPY analysis, GBPUSD Analysis, interest rate, USDCHF analysis