Closed EURUSD short; added new long EURJPY

8.10 gmt

The Euro is still got a lot of buying pressure, keeps looking upward. I have therefore closed the EU short at 1.3795, -9 pips.

Meanwhile, EJ has given a buy signal and I am long EJ as follows:

Long $7/pip EURJPY at 141.82. Extreme SL at 141.15, but I would look at the action if it touches 141.40.

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4 thoughts on “Closed EURUSD short; added new long EURJPY

  1. Johannes

    Hi There Zen. This is Johannes annoying you with questions and comments again 😀

    What do you think of last price action in EURUSD? Giving a look on Weekly Charts i see a long tail candlestick, which usually means a reversal or switch in tendency, and looking on price history this formation has played really well in past occasions. Would you bet on some dollar strength for the weeks ahead?

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    1. ZenFXTrader

      Hi Johannes, interesting question re EURUSD. I’ve been shorting this pair and getting stopped out all this week. The last short yesterday was correct – I just lost patience with it and it broke down just 2 hrs after I closed. My system has indicated a short since 1.3785. The weekly pattern is important, if it really closes with the shooting star pattern, I would look to go short next week when it bounces back close to 1.38. Combining this with the Fed meeting next week with expectations for a taper announcement the fundamentals and technicals are on the same side, so the signal is strengthened. Yes, I would short this pair next week.

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      1. Johannes

        It looks like price action is awaiting for Fed meeting… this pairs has been stucked in a narrow range of 50/60 pips from 1,3740 to 1,3800 that is testing my nerves… I don’t know if it would be a good idea to keep a position open due the high risk of high volatility tomorrow… what do you think about some comments that announce a 50% of tapering from FED?

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      2. ZenFXTrader

        Hi Johannes,
        To bet on the Fed decision is basically a gamble unless one has an inside track on the discussions. The weight of money, as seen from the charts is expecting a small taper or some talk of it. More important for us traders is how the market behaves after the Fed announcement. I have a good entry in EU if it were to collapse, so I might keep that. OTOH, if it were to spike up and down within half an hour (quite possible, it has happened before :-)) then I’d get stopped out and whipsawed. Based on this thinking, I’ll likely reduce my position in EU to something small, like the UJ position I have. Best thing to do may be to simply stay out of the market until after the event. There will be opportunities later too.

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