What Is FX: Whipsaw Falls
Restored from the Empower Network archive (2011–2017), lightly edited to meet our current advertising standards. Views are the original author’s.
What is FX Daily Report
What Is FX: Euro Instability
February 28, 2012
10:30 PM EST
Good evening What Is FX traders; I’m just going to say tonight, “Farewell and good riddance to this day”! (Well that’s not all that What IS FX is going to say…but)
It certainly looked like Whipsaw Falls in the euro earlier today, but What Is FX must confess that we were no Dudley Dooright. He always won in the end. But What IS FX had one ornery misstep today after another.
After 2 short trades (based on the extremely weak Durable Goods Data) that were stopped short, What Is FX finally got in on one at 1.3440 that looked like a real winner. Just as we was up forty pips or so, our computer locked up. When we went to reboot, the computer started to download one of those confounded updates. Since we couldn’t get back online, I went downstairs to make a pen for a friend of ours who had specially ordered one for her boyfriend.
Thankfully, What Is FX had gotten the stop set to break even.
Boy were we surprised when we came back to the computer and found the stop not only had been hit, but the price had moved 25 pips higher!
What Is FX rarely initiates a trade after noon EST, but we tried a small long from 1.3453 with as top at 1.3442. But then I had to leave to pick-up my grandson from school at 1:30. While out, my stop was hit by a pip and the price turned northward again. So I ended up with a small loss on the day after getting what I thought was a decent trade.
Thankfully, we get one more day to see about beating our goal for the month!
Coming up overnight we have the German unemployment figures which may be a big help to the climb of the euro. Then we have US GDP from the fourth quarter just before the US open tomorrow. In the meantime, we have the results of the LTRO at 5:15AM EST. This could be quite the game changer. so I will leave you to ponder what you would like to do. The longer term repercussions should be bearish on the euro, but the immediate response could be very bullish. At the same time, you saw today just how unstable the euro actually is. Now a 40 pip spike was never a real trend changer, but you see how quickly traders were willing to put the knife to the pair, and then how quickly things have reversed.
Volatility should be the name of the game tomorrow, but by the time the alert comes out in the morning, we should have a decent idea of what the fallout should be. We’ll see if we can craft a trading plan from there. it has been a decent month no sense sacrificing all that labor for a real unknown.
What Is FX Daily Directions
The following paragraphs have been omitted by the editor as they contain proprietary trading information reserved for our trial and regular subscribers. Visit The FX Trading Masters for your 90 day free trial.
Happy Trading!
Bill
traderwillie8782@yahoo.com
facebook.com/TheFXTradingMasters
What Is FX February Results: +612.0 pips.
What Is FX Year-To-Date Results: +1,288.0 pips
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