FUNDAS - With the most anticipated ECB meeting in a long time due on Thursday, Bulls are waiting for clues to get their 1.3000 dream back on track. Euro area inflation and growth numbers have been mixed in recent months, that coupled with the Italian/Spanish political situations has led to major selling. The ECB could however put some force back into the euro with a hawkish tone as well as a firm statement on reducing QE.
Techs - Very evident short term demand at the 1.1740-1.1750 level with buyers probably banking on a hawkish ECB. I think if and when we do get that statement, I would be looking for a swing to the 1.2000 handle on a break of 1.1825. The entry here tho will be dependent on the price action after the ECB announcement. So i will be making my plans and adjusting according to what i see on the day. I will NOT be jumping in right before the meeting. This plan is based purely on a reaction vs anticipation strategy. My stop loss will initially be below the demand area of 1.1740, but i will tighten it based on price action and size accordingly.
This is my strat for these types of fundamental events based on my experience. Definitely not for newer traders that cannot handle the volatility associated with post news reactions. So be warned and happy trading.
Techs - Very evident short term demand at the 1.1740-1.1750 level with buyers probably banking on a hawkish ECB. I think if and when we do get that statement, I would be looking for a swing to the 1.2000 handle on a break of 1.1825. The entry here tho will be dependent on the price action after the ECB announcement. So i will be making my plans and adjusting according to what i see on the day. I will NOT be jumping in right before the meeting. This plan is based purely on a reaction vs anticipation strategy. My stop loss will initially be below the demand area of 1.1740, but i will tighten it based on price action and size accordingly.
This is my strat for these types of fundamental events based on my experience. Definitely not for newer traders that cannot handle the volatility associated with post news reactions. So be warned and happy trading.
Comment:
Well, after a reaction like that this plan is clearly void. Euro very weak will watch the close of today and possibly bounces for short term short trades. 1.1550 seems like a reasonable decision point.