20 December 2012

EUR/USD : Safety First, Squared Now

  • Busiest night in ages last night, mostly involving going neutral in long EUR/USD (via -GBP/USD and direct taking profit in EUR) and then reversing to Risk Off towards the close of NY business when the "shooting star" price action was apparent. Completely square in EUR/USD now, awaiting a test of 1.3171 to assess next course of action. Note weekly inverse SHS NL is at 1.3050; this is untested as yet.
  • Long TY hedge is working nicely. Added to it at 132-03 and 132-04 on "shooting star" feel. As a result, am now net Risk OFF here overwhelming a small long CAD Risk On position.
  • Undecided what to do next. This could be just a pull-back, or something more sinister.
  • [The long EUR/USD has been nicely profitable. Added to it with risk limits freed up  when I got stopped out in the long USD/JPY position on "sell fact" pull-back after LDP success in the recent elections, so the switch has been quite effective].


Taichiseal said...

Actually "gravestone doji" is more like it.

Waiting to see if today's price action makes an "evening star" reversal. 3-candle formation is more reliable.

Taichiseal said...

Short term trade. Sold EUR/USD @ 1.3232.

Taichiseal said...

Stopped out @ 1.3270.

So much for shooting star/gravestone doji.

Taichiseal said...

CORE : +1.3264

Time to stick to the inverse SHS uptrend and quit dicking around with short term "clever".

Taichiseal said...

Stopped out. Cut loss. -1.3199.
Miserable EUR trading day 20-21/12.

Fortunately long TY hedge performed as planned.