Flows and Orders

FX market steady in early European trade

There is the usual jockeying for positions in early European trade but very little happening overall and the majors are trading in 15/20 pip ranges. Corporate orders have really dried up now and flows are expected to be light for the next 3 weeks. Many of the big Sovereign and real money players will also be quiet over the holiday period so market moves are more likely to be driven by speculator flows.

Late December is traditionally one of the most profitable periods for the pure market makers as they take advantage of wider spreads and increased volatility.

  1. I don’t really have a target at the moment Milan, I think if EUR/JPY turns sharply we will see 107 quickly and possibly 104. There will be no real money or corporate buyers to soak up once speculators start selling. My position is still small as I’m fighting a strong trend but I’m hoping to be able to increase if/when time is right. I still think 11150/112 is remotely possible but that will be the top imho

  2. I see you anticipate a larger move. I think I will be happy to take profit once the gap is filled. There is definitely more potential, but letting your winner run, especially when trying to pick a top/bottom, is not that easy. I guess that comes with experience 😀

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