EUR/USD/Flows and Orders

EUR/USD bulls: Might be worth an intraday trade near 1.2870

There are reportedly stops below 1.2870 but they were protected even in thin early Monday morning conditions, so I suspect that there is buying interest around there as well.

I’d wait for a test of 1.2870 but if it looks like holding, then jump in with a tight stop, looking for trailing stops above 1.2930 to get triggered later on.

  1. Sean, your webinar on stop hunts was very enlightening, thanks for a great session. I have two questions: you said dealers go for stops usually when they are within 15-20 pips. a) What do they do if the big stops on either side are about 50 pips away? b) It may happen often that the orders they see on the books are ‘protective stops’ by the customers. Customers probably do not want those orders executed. Do the dealers target these stops regardless, or they selflessly try to help the customers (the big ones?) by pushing prices the other way? I can almost hear the laughter, but had to ask since you seemed to indicate that the dealers are just doing their jobs which I presume is helping customers? 😉

  2. Well Pandu, helpful within reason of course 🙂 They certainly will not try and defend the customer but they also won’t aggressively target their big accounts. If orders are 50 pips away on a Monday morning, then they are probably ‘within range’ and could be targeted; otherwise depends on market conditions and liquidity. For instance, in USD/JPY, sometimes 5 pips is when they start due to depth of market

  3. From my market source, short term traders had suggested earlier to go short, looking for a break below 1.2880/75, placing stops above 1.2960.

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