wow!...i see more pro get into this forum...hmmm

Always follow the trend. But of course don't enter a trade at the end of the trend. Lol.

Anyways, I'm done trading for today. I'm just aiming at 20 pips per day and I got more than 30 pips. Will trade again tomorrow.

Simple logic, there were signs that the euro zone cannot take any more interest hike. Trichet said, okay let's have one more to contain inflation. What he did not expect was that the oil price would have come down despite the fact of everyone's favorite, long oil, short dollar. There was signs of demand destruction for oil but ECB chose to ignore it.

Now, everyone's getting out of euro positions to purchase us equities because us equites was first to reflect the pending recession. Within 2 weeks, you will see euro fall to 1.45. There's no fundamental change in the US economy but the fact the euro zone is going into a deep recession will pressure traders to buy dollar and us equities.

Just my 2 cents.

This post has been edited by AdamG1981: Aug 12 2008, 03:01 PM

i think he did it on purpose, there is alot of protest before the rate hike......strong euro is not very good for the economy

overall trend is down.....but i think now is retracement time.....the euro has been dropping so long.....currency drop too fast also not a good sign

This post has been edited by dr2k3: Aug 12 2008, 03:06 PM

Yes, the sharp decline is unexpected, but this is the very first test of euro zone economy and for the ECB. Now the ECB's credibility is being analyzed and scrutinized by traders. Any hint that ECB will decrease IR will cause the euro to drop like a rock.

i dont think he will drop rate.......they will let the euro drop naturally

This post has been edited by dr2k3: Aug 12 2008, 03:10 PM

Well, he will get a nasty surprise on the French, German GDP tomorrow.

Guys stop now if u are longing euro .

I have been shorting the EU in and out scalping with big lot. There is no way I will long euro. Every time I short I got my money in. Seems it is encouraging me to short more.

agree with you......

thats why i dun like counter trend trade anymore....to scary

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Added on August 12, 2008, 3:15 pmdrop rate or not its not ganna affect tomolo GDP result

This post has been edited by dr2k3: Aug 12 2008, 03:15 PM

huhuhuh!! Billy and Adams rock!!...

GU n GJ is acting so weird - -"

Yes, that's why he will see if tomorrow's GDP numbers. Obviously he's facing two headwinds, both higher inflation and a slower economy. But which is more important? Combating inflation or recession?

The ECB has always been hawkish in combating inflation, they only have a single mandate. Now if the GDP numbers disappoint, they have to rethink and this is why traders are dumping euros now. The signs are clear, german confidence has been going down and germany's exports is decreasing at a rapid rate. If he decides to stick 4.25% the next meeting, he's a dumbass.

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Added on August 12, 2008, 3:24 pmBreaking news: ECB aims to drain liquidity from money market.

This post has been edited by AdamG1981: Aug 12 2008, 03:24 PM

why traders dumping the euro?

i tot last time there is announcement on ECB that they r going to make euro go lower....or is it other currency im confuse with~

Simple, the euro zone is relatively new compare to the U.S. That's why traders are getting anxious especially when politics bickering between euro countries are still prevalent.

i mean ECB intervention

Euro is going up due to ECB's decision to drain excess liquidity in the money market.

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Added on August 12, 2008, 3:29 pmThey just did. It's on CNBC now. They are draining euro from M1 supply.



This post has been edited by AdamG1981: Aug 12 2008, 03:29 PM

Euro is going down.....maybe retracement up

Euro arrive at weekly support lvl.......

This post has been edited by dr2k3: Aug 12 2008, 03:35 PM

Might be a bigger retracement for the euro if the retail sales in the US is not convincing.

kinda agree with u.....i will see euro go up if euro can break 1.55 lvl

Anyone using Zulutrade?