AUTOREFRESH 
Sell ahead of 1.3725, buy at 1.3650; rinse, repeat
By Jamie Coleman || January 26, 2011 at 19:38 GMT
|| 13 comments || Add comment
Looks like a big option player continues to sell EUR/USD rallies, perhaps protecting the 1.3725 barrier, and buying dips toward the 1.3650 area…Been working like a charm all day, and paints a bullish picture on the charts as it suggest consolidation of a strong upward move.
I continue to favor offloading the bulk of longs anywhere above 1.3700/50…We’ve stalled 10-pips below a major Fibo, a target for many on this bull run.
No one ever lost money booking a profit, the old saying does…
looks like that may be right about the options player. but i thought fx, and especially eurusd was far too big for one player to manipulate it like that?
Crazy roller coster ride up and down. No direction. Break out either way will be a bad one!!
Jaime – Any idea when 13725 option is set to expire.???
No, Dinesh, sorry.
For us mere mortals, but there are a handful of players who can influence prices in the short-term…
Keep in mind, when we fell from 1.4280 to 1.2860, asian central banks were near constant buyers…market’s ultimately gonna go where its gonna go…
“They say you never go broke taking profits. No, you dont. But neither do you grow rich taking a four-point profit in a bull market” – Jesse Livermore-
Jamie,
Someone asked an interesting question on a forum i’m on, hoping to get your input.
“Does anyone know why the sliding oil and gold doesn’t affect the EUR anymore? Or is it only a matter of time…”
You can make the case that gold is falling partially because the risk of European sovereign meltdown (and the dissolution of the euro….) are receding….
Oil is a much less clear case. I cannot say with any certainty why that correlation has waned of late…
Thanks, i’ll pass that along.
Is it possible that once the option is either touched or out of time that things will turn bearish? Would someone holding the option be pushing it up? It is certainly a time of opportunity, just gotta keep an eye out for the breakout after all this pent up hashing.
Yes Kathy, that’s certainly possible and has happened many times before. We can almost certainly say that there will be a 200 pip move after the 13725/50 battle is decided, we just don’t know which way the move will go- that’s a 50:50 imho
Thanks Sean, 200, mmmm, hadn’t thought about the size of the move, good point.
The market shift was unbelievable yesterday. Simply I couldn’t trust my eyes…
It was Wednesday, the biggest day of a week where market moves like a real bull. I never experienced below 150-200 shift on this day for months. But what happened yesterday? It never moved… Can you believe it? It hardly moved 5-10 pips an hour and all my predictions were wrong leading my account in danger.