EURUSD: closed at 1.3240

7.51 gmt

The EUR trade was not as per my rules and as the ECB gets closer I am closing it at a decent profit.

Closed EU short at 1.3240, +58 pips.

Added 8.03 gmt:

The whipsaw yesterday in the Euro has messed up the chart signals and it will take a day or so for the charts to settle down and show a clearer market picture. Before the whipsaw, there was a clear wedge-top formation in EURUSD which is a strongly bearish pattern. I went short near the top of the wedge and closed at the bottom of the wedge. The two spikes yesterday – high and low – have damaged the wedge pattern and I’m not all that confident of it now. Hence my exit.

However, watching the price action viz. creeping lower despite good European PMI news indicates that traders are targeting stops below 1.3200 before / during Draghi’s conference. I could trade this move, and if I get lucky it may drop a 100 pips as Draghi starts speaking, but its all a throw of the dice, so it’s not worth the stress. There will be more high-probability trades after the dust settles.

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