Waiting For Re-Entry on the EUR/USD
What started off as a day where there seemed to
be the possibility of some “one way” bets turned out to be yet another day of
range-bound, waiting-for any-piece-of-news type trading day.
Sunday evening was where there seemed to be some
indication that the Dollar was going to resume its downward move from Friday.
It did, in fact, drift off to lower levels throughout the Asian and European
session and broke through the 200-day EMA at 90.87. At this point, it seemed
like the EUR and
GBP would be tradeable, the narrow range had been broken.
The Dollar continued to sell-off as the US
markets opened, but was suddenly thrust higher on word that sarin gas had been
found in Iraq. Within minutes the Dollar rallied and we were stopped out of the
long EUR/USD positions. Back to the drawing board. As of now (Tuesday 10:30 AM
PST) the Dollar is trading back above the 200 EMA and I am waiting for a
re-entry on the EUR/USD to the long-side. There can be little doubt that the
market is in the midst of one of the most “touchy” periods I have ever traded.
Cash continues to be king, although patience has rewarded me with a handful of
good trades over the past week. Given the price action, I consider myself
grateful.