Covered Euro for now 120.6s

Ok, I have to admit I expected more from this trade, but I'm too impatient in this market. European news has been pretty dismal. The currency broke below the falling wedge on long term charts, and instead of dropping rapidly, its sliding slowly. I don't like the looks of this positive divergence.

I think there are a lot of shorts in the Euro and it will be prone to constant squeeze spikes.

So from my entry around 122.3, I'm covering here for 1.5 cent profit. Not much, but I'm not playing these divergence/squeeze games. I'll short the next rally, if there is one.

Long term its still a dog.

BTW, if Euro bounces, stocks will probably bounce too.

USD looks toppy at this level. Also, the Fed meeting early next week is a wild card.

Edited by redfoliage2, 24 July 2012 - 10:01 PM.

USD looks toppy at this level. Also, the Fed meeting early next week is a wild card.

It does, but I still think both USD and Euro have more to go. As money flow out of Spain/Italy/You name it bonds and into US treasuries, which are probably going higher too.
Just taking some profit. The currencies have no internals, which makes it a little harder for me to figure out the moves, and they do tend to spike here and there. And profit is profit

I think the consensus for now is that if the Fed is going to do something, its going to be at September meeting, so they didn't appear like they are influencing the elections.

Edited by ogm, 24 July 2012 - 10:16 PM.