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Thursday, April 14, 2011

Trend for 14th of April 2011

It looks like today we have some nice movement in Euro currency pairs. I am not sure what caused the movement yet, so I am not in the trend in any of euro pairs. Euro as you may see is collapsing across the board and is the weakest currency of the day. The move maybe simply treated as a come back to a long term down trend in euro. Portugal is the third country that asked for a support from IMF and I doubt that situation being as it is may push euro higher long term. It will eventually collapse as well as US dollar. 

There was some pretty important data from China, but I do not follow economic news from the region, so I cannot say exactly whether it might have caused the move in Euro or not. In the same manner there was data of medium importance from Switzerland, but again, I doubt if that could have caused this daily trend in the pair. I guess some big boys just started shorting Euro for their own reasons. It might as well be a trap to lure small fish in shorting Euro. 

There was one good technical possibility which you could take and that was in Japanese yen pairs. As I enjoy trading gbp/jpy I will use example with the pair. Gbp/jpy was in a short term down trend recently and when you now that a pair is in a move down you should always be in a selling mode waiting for rallies to sell the pair. So, after London open the pair reached its’ daily resistance, formed two 123 patterns and collapsed. You simply had to place a sell stop order 136.29 with a stop loss order at 136.75 and go down with the market when it started moving downwards. You might have exited at a previous support of 135.50.

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