ECB Executive Board’s QE Proposal Calls for Roughly €50 Billion in Bond Buys Per Month
Here we go…
And the spike in the EUR/CAD on today’s news took out my take profit just above the 10-day high. Apparently FXCM’s new policy is maximum slippage as my order was filled 75 pips behind the stop. Anyways, it was still a profitable trade. Chop chop.
Interesting. My broker just reduced my leverage across all pairs, so even if the ECB announcement has been leaked, I think I’ll just sit it out until Monday.
[QUOTE=“Kevin LaCoste;678607”]Interesting. My broker just reduced my leverage across all pairs, so even if the ECB announcement has been leaked, I think I’ll just sit it out until Monday.[/QUOTE] The ECB meeting is going to be one of the more complex fundamental events to trade and probably will see a few really big whipsaws before the final direction is established. The size, the duration, and draghi’s tone and word choice will all play a huge role in how the market receives it. The rumors and expectations that have been built up around the event will also add a facet that will be in the back of speculators minds…
My bet is that the market will be left unimpressed and euro stages a relief rally, whereupon I’ll be looking for a good place to short. Specifically I’d envision a 80ish spike down, followed by a quick retrace then the relief rally as the market digests the event. This would really catch a lot of retailers as they would enter short because of the hype behind the report and after seeing the spike down. No doubt many would martingale into the shorts as it retraced and eventually will suffer big losses… Them eventually closing the positions will feed into the relief rally. After these are cleared out, the euro will be able to move lower.
Same. Expect only on the EURUSD. Reduce from 500 to 100:1. Just for today. Currently have short trades open so tonight could be a bit of a ride but then again the markets know whats coming even if i don’t. Have stop set just above 1.18 which is break even do you lads think its enough?
I think it will be very complex and hard to understand the conclusion. There are rumours everywhere and market is confused right now. I think market won’t be able to respond to the meeting at least in 10 minutes. It will be wise to wait 15min. and watch market until stabilized then jump to the train…
What’s your opinion about market’s reaction ?
Market reaction is pretty much a non-event. Although the bond buying will go at €60 billion a month rather than €50 billion, it appears the market had largely priced everything in before today. That said, the relief rally may come in the next few sessions.
EUR/GBP, EUR/JPY, EUR/USD break new lows on Draghi’s decree, but not by much. I am hanging in there with my stops still above 10-day highs as this long downward trend may continue. EUR/USD now has 17 of 25 (68%) sessions breaking new lows (LSD) since the last break of a 10-day high on 12/16.
Fantastic picture, Arbitrager!
The Euro/USD dropped around 250 pips, which is not bad for three hours 
Exceptional trading volume
meant that the move was sustained through not one but two round-number levels (1.1600 and 1.1500)…
Good luck to all Euro traders!
EUR/JPY less than 35 pips from going below Oct 16 2014 minor low in previous upward trend.