The last two sessions gave higher lows and the last one even produced a higher high. Perhaps the LSD is wearing off for the Arbitrager on Acid. Because the 7-day high is now the tracer for this trip, the Arbitrager on Acid is waiting for a break of that high to get out with a stop just above it locking in about 190 pips. In two more sessions, if the price does not move above that high, the 3-day low may come off of the 7-day low and that is where the Arbitrager on Acid will drop another hit on this trip to really get deep into it.
Can’t wait to see if you guys end up dropping with the Arbitrager on Acid.
We are seeing the largest bullish correction in EURUSD that we have seen in months. That alone would be enough to give us pause but the pair is now above its 10 day moving average in a highly oversold environment. While the daily trend still remains strongly bearish the short-term trend is in danger of becoming bullish with a break above 1.2700.
EUR/USD is still climbing slowly but currently the market is not at all volatile, because everyone are waiting for USD Fed to release the Minutes from the FOMC meeting – they should do so later today and then it will probably become obvious whether EUR/USD will break above the resistance at 1.2700 or it will start falling again, heading for 1.2500 (or even lower) again.
Above 1.2700 expect the short-squeeze to continue toward 1.2780-1.2820 where we should see plenty of bearish selling. The daily trend remains bearish (for now) though we are in the second day of action above the 10-day moving average, leading us to believe we are at least seeing some sideways consolidation before another leg downward.
The USD continues to fall today in some cases significantly.
Against the AUD more than 1% and 1.8% against the NZD.
The dollar was stable until the release of the FOMC minutes … then. the party started!
It looks like correction has begun for EUR/USD - it’s currently trading at around 1.2770 with a likely target at 1.2800, perhaps even 1.2900 later on. The question is whether the bearish trend is exhausted and this is a reversal or not.
a Huge sell off on all the american stocks after the FED decision and the fear that the weak Euro will damage the american economy. soon EUR/USD has to start of a bullish trend the FED and ECB will push it to happen.
Breaking a new 7-day high, the trip was over, the LSD was gone. 188.9 pips won a 1.61% increase in the value of the Arbitrager on Acid’s account. At almost 800 pips below the 200-day moving average it should be no surprise to see the average catch-up some before anymore LSD becomes available. That said, the next break of a 3-day low will be shorted by the Arbitrager on Acid.
The break above 1.2700 brought a short squeeze to the 1.2780-1.2820 price region, with resistance at 1.2790 eventually bringing about heavy selling and profit taking to bring the exchange rate back below 1.27. With the pair in its third day above its 10-day moving average we expect short term bullish correction to continue (despite long-term downtrend and bearish fundamental environment) and will look to set a long on a drop back down to the 10-day.
EUR/USD did seem to be in a bullish correction but it also started heading down again. At this point I am not certain whether this is part of the correction or the bearish trend is continuing, or if this is an attempt to form a double bottom. I think we might have to wait for Monday for the situation to become clear.
