EUR/USD continuing to gain

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We are getting some outsized moves after Bernanke’s Q&A. Why?

What I am hearing from traders is that the FOMC minutes from earlier today were a little confusing, that the markets were made a little jumpy from these. In there also there were ways of reading the minutes to support longs or shorts, depending on your disposition.

Bernanke’s Q&A, though, was a little clearer -it was more dovish that hawkish. This triggered position clearing from those long of USD, and it snowballed from there.

Pretty soon, I think, we are going to get a good fade opportunity to get long USD (choose your poison, EUR/USD looks like a good potential), once the dust settles a little.

Author: Eamonn Sheridan

Eamonn Sheridan worked with Bankers Trust Australia for 13 years as a Spot foreign exchange dealer, trading across all major currencies and all time zones. He rose to a Vice President position, running spot operations during the busy European time, leaving the bank just prior to it being sold to concentrate on running his own business in the ‘real world’! The markets, however, had him hooked – he continued to trade equities, CFDs and then on to futures, giving him broad experience across financial markets. He is now active in FX and equity index futures as well as writing for ForexLive™. Eamonn is a graduate of The University of Melbourne in Australia and lives in New South Wales.

26 Comments

  1. Getting short EURUSD vs that 38.2% fib level from FOMC – FOMC move of the last few weeks – at 1,3010, TP down towards 1.2950 as a relief move.

  2. I think USDCHF might be good for a punt. Maybe Cable too?

  3. Hi TraderHoo – agree, not just EUR. Like I said, though, have to wait for it to settle first

  4. Hi people, the sentiment has changed. Do not attempt to go short. Euro and Pound will stay bid for the next few weeks. so please take this advice seriously.

  5. I can’t believe you Mr Stolper

  6. Thanks Wayne – good point. I would add that short-term traders will get plenty of opportunities to trade both ways with the step up in volatility.

  7. LOL – Yes please try to short EUR/USD here (pref is size) I will sell you half a yard right now…
    Bwahahaha

  8. LOL DeskTrader – dont stand in front of the train here, wait for it to settle first. Important not to lose one’s head on these moves, stay rational and keep track of levels.

  9. The same with yen. If there is no surprise from BOJ today, it is heading for a collaspe.

  10. The EUR / USD did a moving average cross to the upside .I expect that the EURO will top out again.I have been using EFT options on the EURO , instead of my Forex platform of late and have getting good results.

  11. never seen anything like this. just a few words from a fed chairman move trillion dollar markets

  12. eamonn, didnt GS advise their clients a few days ago to go long eur/usd for a 1.35 ??

  13. Hi Mike – I recall them saying to buy around 1.3060 (I think it was???) – with a stop below 1.2800 (again, I think????)

  14. EUR close to 1.31 now. Eamonn, how much of the move thru 1.30 can be attributed to thin liquidity?

  15. something like that… oh what a sweet couple of hours :))

  16. Hi Tucano – the end of New York through to Tokyo morning is the least liquid time of the 24-hour FX day, yes. And also, this is a very strong position-covering move on dovish comments from the Fed chairman.
    It looks crazy, looks overstretched – but these things happen in markets quite regularly.

  17. Thanks Eamonn, I love your comments. Shame that there is no “like” button similar to Facebook :)

  18. Give it a day or two to settle.
    Loss of opportunity is far better than loss of capital !!!
    Best advice I ever received a couple years ago and I’ve never traded the news since…and never lost a penny !

  19. Eamonn – how’s your EUR/USD short looking? You’d be down about 350pips by now LOL !!!

    Folks – this is why you don;t take advice from the internet.
    Have a look at who’s in the market and you’ll see what’s happening.

  20. Thanks Desk trader – your nonsense seems only surpassed by your ego

  21. +1 Thanks Eamonn. 400+ pip move in one day is quite stunning!

  22. parabolic is the only word i have

  23. It is Tucano, indeed.
    Those who join me for the Monday morning opening each week will see big moves from time-to-time (not often as big as the one we just had, though), lots of volume trying to squeeze through a small door of liquidity = big move

  24. this is crazzzzzyyyyyyy.had to cover my short position or by now i would have killed myself!!!!!!!!!!!!!!!!!!!!!!!!!!!

  25. Thanks Eamonn for all you do…
    It’s quite entertaining to read some of these comments, you just have to shake your head sometimes.
    You can easily identify seasoned traders from rookie traders, just by their comments.
    Keep up the fine work !!!

    Derek

  26. Thanks Derek

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