Trade Closed: 2008-04-01 14:05
Positive US ISM data brushed off recession fears, ramping up risk appetite in carry trades and the global markets. This pushed up our short position back above our entry point and up to our stop area.
We will see how long this sentiment will last as many traders are looking for the end of the crisis while others are looking to sell the rallies. Stay tuned for a new trade idea very soon!
Trade Update: 2008-03-31 17:36
Since our short entry, the pair continues to move forward in a ranging fashion. After testing 1.5750, we’re back to trading around our entry just below 1.5700.
I will continue to hold as I think global risk aversion is still in play. No major events for either the Euro or Swiss Franc, besides Swiss CPI this week, so look for technicals and global risk appetite to guide this currency pair’s movements. Stay tuned for updates!
Trade Idea: 2008-03-26 09:10
Like Pipcrawler said in his most recent post, there was no major change in the fundamentals, and after the brief rally after the Fed moves to bring liquidity and the whole Bear Sterns news, traders may be back to selling on risk aversion and a slowdown in global growth. I guess people realized that one string of Fed moves within a few months won’t fix years of misconduct in the credit markets and the consequences in a week. Go figure.
So, we’re going to keep it simple today and look for the pair to go lower below the consolidation area.
Stay tuned for updates and good luck!