Ok last night my little flurry on the AUDUSD decided to go against me, but that’s cool because my risk was VERY low and had a very tight stop loss so I walked away with a small loss. That’s the best type of plan. Today I’m selling EURGBP.
The banks in Cyprus are opening today which will I predict will result in people withdrawing huge amounts of EUROS from the banking system and placing them in a far safer place, perhaps under the family pet or in a pillow case, or even, for those with a more pirate like disposition into a chest in the ground, X marks the spot.
We have EUR news as well but I do think that will be overshadowed by the loss of a lot of EUROS from the economy.
Now. Not forgetting that the market, although AFFECTED by news is not driven by news it will be interesting to see how it responds to the debacle. Perhaps this mornings 5 minute chart is a hint?
Note this is just after the news at 7:55am. There was the usual Rally and then drop. Which is why a high stop loss is important if you are like me and despite not wanting to trade when news is going on. Ending up having to because of personal circumstances, remember with news, even if it rallies against the trend it will pretty soon return to the trend. If it rallies in FAVOUR of the trend it normally carries on from that place after perhaps a small retrace.