Very interesting to read something Jamie posted overnight from Vincent Cignarella where he pointed out that last time the swap lines were announced, EUR/USD rallied 200 pips before crashing 700 in the two weeks thereafter.
The question is whether market conditions are the same this time around? As we know, the world is bearish EUR and many speculative players are short and I do not know whether this was the same as last time. From a price-action perspective, I think I’d prefer to try buying EUR/USD between 1.3360/1.3400, looking for perhaps another short squeeze up towards 1.3800. Risky play definitely given the EU situation, but no news is also good news for the EUR so all it might take is a few days of non-events and that could trigger the next rally.
Whatever you’re doing, buying or selling, keep stop-loss orders fairly manageable and let those profitable trades run.
