Got the BOE and ECB rate decision coming up today! What’s your game plan for these events? Think the ECB’s gonna add LTRO?
Long Eur/jpy and long Eur/usd.
What’d ya think?
^ Long eh? 
Yeaouch, that rate cut was a surprise! Then again, that long EUR/USD would’ve been good for a hundred pips if you entered at 1.3300
[QUOTE=“risc6k;561997”]Long Eur/jpy and long Eur/usd.
What’d ya think?[/QUOTE]
I’m getting burned on these two long trades. What should I do? Don’t want to take losses, average down and wait for retracement up?
Thoughts?
Pause and think for a moment. USD news for the last week has been bullish - NFP, GDP and tapering speculation are all favourable to the USD. On the EUR side, the ECB just slashed interest rates. What story or angle are you going to play if you want to long the EUR and short the USD? If you want to keep your long on the EURUSD open, there has to be a good reason for it.
And coming up … no news for EZ next week, the ‘talk’ is loud nonetheless, the ECB arsenal is not empty, you will hear about zero rates and indeed negative rates.
You will also hear of much need ‘stimulus for EZ’ (to which I agree).
The rate cut wasn’t such a surprise, check out the inflation rate for EZ, see where it’s heading - into that most horrible of places - deflation.
Imagine you are a business person, you intend to invest - in stock - you are aware that that stock will drop in value because of deflation - would you invest?
How to fight the threat of deflation?
Eur/Jpy - both trying to be ‘weaker’, I’m guessing long around 133.50 -30 - being squeezed is not nice. I hate buying just under a weekly pivot, there is reasonable hope for 133.00 coming AS may well be down and the London up.
Fibre, the reality is that the USD could take a fall, especially on Thur next.
I’d say this is where most longs are hurting most, 3500 seemed a reasonable support - I most def would not exit a long where we are now, the first hurdle will be 3400, then maybe we could get some support.
You are now in “damage limitation” mode - I have found that you have to use the techs when in that mode 
Good luck in whatever you do.
Eur/Jpy Asian was indeed down and London up as expected - 3300 just not there yet, problem is the new session coming up may push things either way here.
Fibre, 3400 was reached in London, also as expected - same thing for the new session coming up.
Don’t forget that we also have a bunch of EZ GDPs later this week, could determine where EUR pairs will be headed. Weaker growth is eyed so I wouldn’t be surprised if the euro finally gives way to the dollar or yen. Just my thoughts though!