I was afriad of getting whipsawed on the economic data release so I covered at 8989 for 10 pips... I am sure it will keep falling as it currently is but it is jumping up and down. Better to take the 10 and get out of the way EDIT: Pound down to 8659... was shaken out by the huge swings from the data. Well small consolation I got a profit at least lol....
The attached chart shows the obvious bounceability of the Euro FX. All the majors are similar in their 15 minute charts. As a position trader though--and that's the way I am looking at these right now, I ignore the 15 and continue from my analysis of the longer frames. See attached 15 minute chart. Am I missing an opportunity to grab profit on the long side? Probably--but that's not my time frame right now.
Haven't made any new trades lately. Still holding the Pound, Euro FX, Canadian and Aussie short here for positional trades.
I expect bouncing this morning. Longer term charts are still telling me to stay short, especially on the Aussie. I may add on the next good daily signal down.
Was stopped out. This morning I saw a long entry again at 1.8813 and took it. We are back to 8847 so gonna trail stop this and see how much we can retrace after this mornings drop on UK economic report.
Here we are approaching this 1.27 level again in the EuroFX. This will be the third time. The first time we bottomed at 1.2695. The second time it was 1.2692. This has been somewhat frustrating for me as I have been short and watched the bounces take away potential profits. However, this is who I am--I embrace the fact that markets must bounce and I stay with it. Another time or two of not busting through this area mau have me changing my mind, but not right now, today at this minute. Staying short for now.
---And then there is the swing trader in me that eyes the 60 minute chart and can clearly see the potential for a bullish divergence with both the MACD Histogram and with the RSI. This would be in relation to the low at 1.2719 yesterday 10/04/06. I start getting that feeling of "ok we'll drop down, the selling will dry up and we'll bounce". I'll keep a close eye. If that pattern should totally develop, maybe I'l swing trade it this third time. --And look for new places to short as my long term bias is for short.
Very nice move down today(Euro and Pound futures). I am still holding shorts in the Pound, EuroFX, Canadian and Aussie as I am lookng for long term gains here. What I like about today is that there was nothing to do. Stops were way outside where the market could get them during the announcement (and still are). I see now we have the intraday bouncing going on, but I'll pass today. Position trading is my favorite type of trading.
Initiated a short term trade here . Short Euro FX at 1.26410. ( I am already short Euro FX on a positional basis).