Tuesday, March 15, 2011

Rules are made to be broken

I counsel never to fade strong trends. Ever. EUR is in a strong trend.
This time is different. Fade it. Sell it with a stop above 1.4050 for a steep slide…trail stops lower as we drop.
Should we break the 1.3750 area, we should be good for 1.3500 in the next few weeks…Good risk/reward.
It is also likely to be painless. The stop will be hit before ya know it… 
The euro pact is smoke and mirrors, like every pact in EU history. There is demand out there for euro, that’s for sure, and that is troubling. But sometimes you have to feed the chickens when they are hungry and right now they are starved…
EUR/USD trades at 1.4008.

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