Comments on: Looks good for some two-way volatility in European trade https://fxww.com/looks-good-for-some-two-way-volatility-in-european-trade/ The Professional Source Thu, 11 Oct 2012 06:06:34 +0000 hourly 1 By: Sean Lee https://fxww.com/looks-good-for-some-two-way-volatility-in-european-trade/#comment-1319 Thu, 11 Oct 2012 06:06:34 +0000 http://fxww.dreamhosters.com/?p=1360#comment-1319 Thanks Iridium, you’ve been getting it spot-on over the last few sessions

]]> By: Sean Lee https://fxww.com/looks-good-for-some-two-way-volatility-in-european-trade/#comment-1318 Thu, 11 Oct 2012 06:05:37 +0000 http://fxww.dreamhosters.com/?p=1360#comment-1318 At least its moving Jason, gives us a chance 🙂

]]> By: Jason Jin https://fxww.com/looks-good-for-some-two-way-volatility-in-european-trade/#comment-1317 Thu, 11 Oct 2012 06:03:37 +0000 http://fxww.dreamhosters.com/?p=1360#comment-1317 Woo Hoo, Seems to be an easy day to make money 🙂 Good Luck Sean.

]]> By: Iridium https://fxww.com/looks-good-for-some-two-way-volatility-in-european-trade/#comment-1316 Thu, 11 Oct 2012 05:46:25 +0000 http://fxww.dreamhosters.com/?p=1360#comment-1316 Good morning Sean and all,

Both our recommendation to buy close to the support trend line of the wedge and to short in the 1.2880/1.2890 area have turned to be correct. The market is neutral-bearish this morning and will most probably test again the wedge limit and the 200DMA as you mentionned. The threshold levels indicated yesterday (1.2815, ~1.279, 1.2735) are also in sight for some stop loss hunting. Given the spanish sovereign downgrade, and the fact the SP500 is on the edge of exciting a longterm upward channel as shown on the picture below, there are some chances we might witness the start of the risk off impulsion that we were expecting for the month of October. However, I still believe the EURUSD will visit new highs (the upper edge ofthe wedge) before it finally dips, therefore my expectation for today is for some choppy trading. In other words, we break the 200DMA, then the 1.2815, then we hit the support trend line currently at 1.278, possibly go below to hunt for the stop losses and then rebound by the end of the day. Therefore, I recommend to buy below 1.28 (be patient!) with a scalping approach, that is limited gains or SL to zero.

http://postimage.org/image/rs7lnd7yv/

http://postimage.org/image/fo0dl48mj/

]]> By: Jones https://fxww.com/looks-good-for-some-two-way-volatility-in-european-trade/#comment-1315 Thu, 11 Oct 2012 05:35:08 +0000 http://fxww.dreamhosters.com/?p=1360#comment-1315 Great, seems like I was not the only one that closed my short and pushed up the price.

]]> By: Sean Lee https://fxww.com/looks-good-for-some-two-way-volatility-in-european-trade/#comment-1313 Thu, 11 Oct 2012 05:27:40 +0000 http://fxww.dreamhosters.com/?p=1360#comment-1313 Yes mate, if everyone’s short already it can only go up, no matter how bad the news

]]> By: Jones https://fxww.com/looks-good-for-some-two-way-volatility-in-european-trade/#comment-1312 Thu, 11 Oct 2012 05:26:30 +0000 http://fxww.dreamhosters.com/?p=1360#comment-1312 Thanks Sean. So the market rallied because of short covering and poor liquidity?

]]> By: Sean Lee https://fxww.com/looks-good-for-some-two-way-volatility-in-european-trade/#comment-1311 Thu, 11 Oct 2012 05:21:04 +0000 http://fxww.dreamhosters.com/?p=1360#comment-1311 Hi Jones, the mkt expected unemp rate to rise to 5.3% from 5.1% and was short in anticipation. Rate came in at 5.4%, virtually guaranteeing another 25bps rate cut next month one wud think, yet the AUD rallied straight away. Sure some of the sub-data was ok but that’s still a big jobless rate jump. Therefore the mkt must be mega short AUD across the board.

]]> By: Milan https://fxww.com/looks-good-for-some-two-way-volatility-in-european-trade/#comment-1310 Thu, 11 Oct 2012 05:18:35 +0000 http://fxww.dreamhosters.com/?p=1360#comment-1310 Hard to tell how EU traders will react, as the news can also be seen as “positive” because it may lead to a sooner bailout request from Spain.

I agree, let’s hope for a volatile session! It was quite difficult to trade EUR/USD these days, at least for me. 🙂

]]> By: Jones https://fxww.com/looks-good-for-some-two-way-volatility-in-european-trade/#comment-1309 Thu, 11 Oct 2012 05:15:49 +0000 http://fxww.dreamhosters.com/?p=1360#comment-1309 Hi Sean, a stupid question from me, why is “rallying strongly despite a much greater than expected rise in the unemployment rate, a sure sign that a market is short”? Thanks.

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