Hey everybody, hope you’re all having a wonderful Thursday. I share my opinions on what occurred in the markets on a daily basis. Today we’ll be looking at what happened to the Euro specifically EUR/USD. If you followed the price action carefully on the 1H time frame you would identify a downtrend in play with the market trending below the 20 EMA and 50 and 100 SMA.
But still majority of the traders were long according to data provided by IG client sentiment. This is a perfect play of large speculators betting against smaller retail traders. Over 65.7% of retail traders were long. Don’t be a liquidity provider. Follow the money not the traders(most are idiots).
Be careful on trading the news. US oil inventories were being released around the same time as the sharp decline of and were below expectations but money still flowed to the greenback.