Did y'all see that yesterday. The EUR/HUF has a massive move lower for over 570 pips and I was able to catch that. I exited out of my position because I have been in the pair for a while now and think it is going to push higher. It is pushing higher now, so for now I am correct. But I think there might be a larger push higher. If this pair can hit 380 or higher, I'll likely get back in and start building up to a standard lot. The reason, the Technicals (monthly head and shoulders with price almost completing the head), Fundamentals (over 25% inflation, 13% interest rates, Hawkish NBH and the possibility of increasing rates), and sentiment (news, articles, thoughts, analysts are pointing to a stronger HUF) are all inline and providing support for each other. This strengthens the probability for price to move lower. This heightens my conviction in building larger positions on this pair as this might be an opportunity that I don't want to miss. Of course I am going to build my position in blocks and not just place one max position. I am thinking though, that the price might push higher because of the coming up ECB Rate Hike. But I am also skeptical that price will hit 380 (so, I might place an entry at 380.50). What would be good is to build a position above the 380, build a max position to have my average position above the 380, see price push to around 375 and place a stop at 380 (one can only dream). So now it's the waiting to see what price wants to do.
Comment:
Price pushed above the 380 and I am currently building my position. I have a 10k position and placed a stop at 390. If price does hit my 390 position, I may wait for a few days before I get in again. I think this pair is going to push lower as time goes on. Since price has pushed up higher, I'll start placing entries from 380 - 390 and see if price is able to hit them. There is an inverse head and shoulders patten that I see, so price could drop lower, to around 375 before moving higher. Since the EURHUF is following what I thought it would do, Once I build my position, I'll possibly put a profit target at 376 to exit out and see if price pushes higher. For now, I'll just work on building my position.
Trade closed: stop reached:
Price decided that it wanted to blow past my stop higher and is trading above the 390 lvl. Since price is now trading against me, I am going stand by and see what price does. I still have other pairs though. I need to figure out what caused the move in price and see if this move is just the start of establishing itself.
Comment:
This pair is following what i have down for my plans. Price is pushing in my favor and I have a stop at a good price. If the EUR keeps pushing higher, the EHUF will push lower. So with my stop in place, and me having a short position on, not only can I collect positive rollover, but if price pushes in my favor, I can gain on price pushing in my favor on the movement.