$menuslug, 'depth' => 4, 'sort_column' => 'menu_order', 'container' => 'ul', 'menu_id' => 'menu', 'menu_class' => 'fr', 'theme_location' => 'primary-menu' ) );
echo $_SESSION['username']; -->
July 30th, 2014 by Brad Gilbert -->
Trading the past few months has been reasonably tough as central banks stand firm and contemplate changes to monetary policy. I’ve lost count of the number of times I’ve been squeezed out of a short EURUSD position. But finally, thank goodness we’ve had a few changes and it’s cleared the air somewhat.
First the European Central bank (ECB). They cut the Refinancing rate to 0.15% from 0.25% and the deposit rate to -0.10%. This was widely anticipated in the market following ECB President Draghi’s comments at the previous ECB meeting. Euro topped out at 1.3992 at the time and we saw an aggressive sell off straight away with the best opportunity on a break of trendline support at 1.3790.
The negative rates side of things though really gives you a clear indication of the state of affairs in Europe and coinciding we are seeing a massive exodus of cash out of Europe.
So what are we to do? It’s simple really. Look to sell rallies in EURUSD and EUR crosses or breaks of support trendlines. We’ve got at least five good EUR crosses to get our teeth into: EURGBP, EURYEN, EURAUD, EURNZD and EURCAD. I’m leaving EURCHF out of the equation at the moment as the 1.2000 peg by the Swiss National Bank (SNB) makes trading this cross rather pointless at this stage.
I’m highlighting the EUR crosses primarily because the US Federal Reserve could upset the sell-off in the EURUSD. It’s bit of a game of who’s got the worst economy with the European and US battling it out for the wooden spoon at the moment. Federal Reserve policy could change and upset the current downward movement in the Euro versus the Dollar. But as far as the crosses go the Euro is definitely heading lower so focus on them.
Posted in (http://www.traders4traders.com/category/commentary/)
-->
-->
Untitled Document
MANAGED ACCOUNTS
-->
© 2014 Traders4Traders INC. All Rights Reserved.
-->
The bottom line: Trading involves risk. Past performance is not indicative of future performance — nothing here is financial advice, and no outcome is guaranteed.
Written by Brad Gilbert, Founder & Head Trader at Traders4Traders — 36 years of institutional FX experience, mentoring 1,000+ traders since 2009.
The Game-Changer Trading System gives you the same tools the desk uses every day.
