Friday, 11 November 2011

EShort ERUSD and German reluctance for the ECB option

There are historical reasons that Germany is reluctant for ECB involvment in the current EU crisis. Not many people living can remember the hyperinflation that Germany saw in the 1920's and certainly no one reading this blog but it has left a deep awareness on the German psyche.
More importantly is the current EURUSD today- price is at my reaction line i have been eyeing and mentioned earlier this week. I went short on the opening of the euro trading session at 1.3653 with an intial 15 pt stop now at b/e. Price seems to be struggling to get up above 1.3650 again. My objective was a LL ie retest of 1.3600 but as time goes on i am less sure. The bottom line here is that these reaction lines do exactly what they say on the box- react...however it is always price itself and it's strength or weakness that dictates if the reaction is a few pips or a 100.

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