Cover Your Shorts, Exit Strategy and Reversal of Trade

FX:EURUSD   Euro Fx/U.S. Dollar
If you have been short EUR/USD             or buying FXE             puts, for this last move its time to scale out and take profits. Tomorrow morning we will have a volatile whip lash as the ECB is likely going to announce QE . There have already been reports of leaking news concerning the size and scope of the QE . Bloomberg has even mentioned a delayed start date, March 1st.

From the charts I'm reading I'm expecting a quick plunge as low as 1.12 with a rally that could go as high as 1.20. This is the relief rally many traders have been begging for. So take the bold action and go long. However, don't hold on thinking this is the start of a new long term bullish uptrend, we will eventually see parity and finally .80 EUR/USD             handle.
thank you for the notice
No problem.
+2 Reply
wealthwzrd QuantitativeExhaustion
How these policy and rate changes will affect the respective currency pairs is the most confusing part for me...and i was an economics major...
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Capital Risk and Currency is always confusing. When you see a dominate trend developing, you got stick with it. Now days, involves political decisions and central bank policy. So this is not economics, but the government heavy hand you've been warned about.
+3 Reply
Hi many thank,s.
very nice
bottom of channel and 1.272 fib =1.1253
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Nice Find! More support for a bottoming tomorrow.
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Maybe some future support resistance levels. Not a Wolfe Wave Pattern by any measure, (not really a fan of that pattern) but that's what it sort of looks like so far.
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gunne821 QuantitativeExhaustion
Cheers JR, I've had the same idea here, been short since 1.2537, and I thought it was about time I took some profits...So you think we'll see 1.12 tomorrow?? Hard to imagine...For the long haul, I see the EUR as well beneath parity.
+2 Reply