Thursday, 17 June 2010

Coil success in the EURUSD

When the market coils it is generally waiting for some news. For example today the currency market was waiting for the success of the Spanish bond auction (which I didn't know). I took my long position and at 9:00am as if by magic the pair took a rocket ride.
Lots of reason for the long position - lots of shorts out there bearish on the euro, stochastics in the "overbought" area (don't know if this applies to daily as much to hourly in a trending market)
A good point raised by a poster on the DT site is that it's the ECB underwriting the bond auction by buying the bonds ... surely this is effectively just money printing?

Also another tip I read in the "Master Swing Trader" is not to try and short the triple top as it may become a break out

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