eToro – Forex Trading Forum

[BlueinGreen]

Hi all,

Yesterday we had a bit of a pullback on EURUSD. This is something I am waiting for, for some time now. As I mentioned before, I don’t like to trade a one-sided market. A market that moves only in one direction, with no pullbacks, or healthy corrections, EURUSD seems more as a bungee jumper, dropping to the ground like a stone, but in any moment the cable might end.

I am thinking of all these lucky (and smart) guys who entered short EURUSD somewhere around 1.6 and 1.500, some of them are sitting on more than a 1000 pips in profit by now.
At some point they will start to worry the market would start eating back their profits. When that happens, a chain reaction would lead to some heavy EURUSD buying. Then the real correction would come- maybe it is the one that started yesterday and will develop on, maybe not, we will have to wait and see.

When we start seeing dollar bears in this game as well, then it will be easier to assess trading opportunities ( at least for me).

Meanwhile, the carry trade is getting back some steam, if you would notice for example the AUDJPY pulling back from its low around 93. Generally the YEN is still very weak, even though it is yet to overcome the upper levels of 110 barrier on USDJPY.

Events today

9:30am GBP MPC Meeting Minutes Forecast 7-2 hld Previous 7-2hld

11:00am GBPCBI Industrial Trends Orders Forecast -12 Previous -8

1:30pm CAD Core Retail Sales m/m Forecast 0.5% Previous 0.4%


GBP MPC Meeting Minutes = The Bank of England (BOE) Monetary Policy Committee (MPC) Meeting Minutes are a detailed record of the committee's interest rate meeting held about two weeks earlier. The minutes expose the votes cast at the meeting and can give traders further insight into the central bank's stance on monetary policy. Traders carefully comb the minutes for clues regarding future interest rate shifts.
Happy trading