I’m a very beginner forex trader, but according to all wise books and forum discussions I’ve read a lot for the last weeks, also according to my own short experience the volatility of EURUSD is usually very low during Asian session, maximum one -two hundreds points. Furthermore the main trend of Asian session for this currencies pair do usually repeat the main trend of Europe/USA session, right?
That’s why I’m totally confused of what I see now on the chart. The price was heavily fallen during the Europe/USA session, it tested several time the support 1,13150 and was just at this level at the moment NY market close. At the evening after the US session closed some experts (for example at FX Street) even were supposing that the price will make a breakthrough during the Asian session.
But actually from the Asian session begin at GMT 24.00 (12.00 AM) the price has rushed up as a mad. The chart looks visually for me like a very strong up trend. By now the price has made almost 350 points during the last 3 hours only and now the is almost 1,13500, as one can see. What is more important, I can not see any marks of that it would be going to slow down!
I suspected that some sudden and important global incident happened during the last hours, so I spent a lot of time to search across different news sources, but have not find anything interested.
I have a huge (for me) opened EURUSD trade currently so I need to make the right decision about it. But how can I make a right decision if I don’t understand what’s happening??! I’ve tried to fin any explanation via Google, but could not.
Please could any experienced trader give me a hint what is does it all mean?
You made two assumptions, and based on those assumptions you were convinced that the trendline would prevail, and the strong support would be breached.
Your two assumptions were:
(1) in the Asian Session, price continues the trend established in the previous New York and London Sessions, and
(2) “experts” can predict the future, and they were predicting a breach of support in the Asian Session
Both of those assumptions are suspect.
But, your biggest mistake was committing to a trade in which you could not stand a 35-pip retracement – using your numbers, from 1.1315 to 1.1350.
Are you trading live, or on demo?
How large is your position?
Where did you enter?
Where is your stop-loss?
If your stop-loss is hit, what percentage of your account will be lost?
If you go the hourly you will notice a sudden spike up at 15.00gmt
Then go to cable - check the same time - seems buyers came in on GBP on a news release that a deal on Brexit is to be finalized by Nov21 (that’s the time that the news broke).
Long story you will find it on the net - google Raab and that date.
Fibre followed cable on the reaction - happens often.
Will it last? - maybe for a little while, old saying is buy the rumour.
