EURUSD: Wait for Draghi's speech and maybe for the daily close

We should be seeing a turn in the Euro very soon. I'm already long with a wider stop and looking to add to longs. I advise caution today, the market is awaiting Draghi later today. We're overbought in 4h, and RgMov shows bearish sentiment in this timeframe (contrary to daily and weekly bullishness), so a new low could trigger selling in the short term.

What I'd like to see would be new lows tripping 'All stops known to man' after the news and a quick reversal, closing the day near the highs. This would give the perfect excuse to enter longs on a new daily high after today's close, and tightening my initial position's stop, reaching a full position, long the Euro. If not, another positive outcome would be a rapid rally causing today's price range from the open to be bigger than Friday's true range, giving us an excuse to buy dips and/or new highs above the previous 3 days' range.
Let's keep our eyes on this now. Right now, there's a bullish signal in the daily with new highs, but the news are a huge risk, if we were to trade with tighter stop losses.

Good luck,

Ivan Labrie.

Commentaire:

I have a small long and a wide stop of 350 pips, I'll add and tighten stops once it's clear EURUSD and gold have bottomed. For now I could easily see a bit lower prices before all bulls are shaken out.

Trade fermée manuellement:

I'm flat EURUSD for now, but watching. I think Silver's outperforming gold currently, and we are seeing AUDUSD outperforming EURUSD as well. Until we get a risk off rally, the rally in gold and the euro are suspicious to me.
I'm interested in getting involved, but I'll wait for now.
Also monitoring bonds for entry.