Surprisingly, I am back. After finding good homes for my dogs, selling my house, moving to another house and launching trading rooms and the new OEC, I have carved out time for a posting. I felt this was very important to do as the ECB rate decision is due out in the morning. This decision comes at a very critical time. We had nearly a 750 pip run on the dollar but sentiment is uncertain. Many traders are still very bearish but I wonder if that is nearing an end. If the ECB raises rates higher than the expected, this could lead to a possible dollar catastrophe/panic. If the announcement is disappointing, it could be the catalyst to reverse the run. Taking a more conservative approach to the trade and waiting for a clear break out of the bull flag I see an entry at 1.30 with a target of 1.36 over the next 2 months, the reverse would be a close below 1.2550 and a target of 1.1950. See chart
6/8/2006
7:45 est
EU
ECB Announces Interest Rates
2.75% expected
2.50% previous
The other big trade I am watching is the Chf/Jpy. The pair has broke out of the ascending triangle and appears to be going for a small retest. A sudden move up could be justification for a long position and 250-350 pip target. See chart
I hope all is well, wish you the best of success and hope you are able to "print" some money on tomorrow's announcement.
Blake Young
Random Acts of Forex
actsofforex@gmail.com
