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.


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?


    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.


      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?


      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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