Thursday 4 December 2014

The ECB Rate Decision Certainly Had an Effect




The ECB rate decision and Mario Draghi’s press conference certainly had an effect on EUR/USD, but it was not the effect I was hoping for. It is a good thing that I tend not to trade during such major events, because a market that volatile really is not to my taste.

That said, despite the movement to the upside, I think it is unlikely that the downward trend is over. It just means that we might have to wait a little longer before the pair reaches 1.2200. I think that this movement to the upside just means that we will have the opportunity to sell again.

6 comments:

  1. EURUSD tried to rally during most of the day yesterday, but struggled to stay above the 10-day moving average and the pair gave up about half of the gains considering that the non-farm payroll numbers are release today. Most traders will be willing to get out of the market at the end of the day, as the volatility should pick up this morning. So rallies all the way up to the 1.2577 level will offer selling opportunities.

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  2. Very nice article. Thank you.

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  3. Great assessment of the trade.

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