Actually I do not believe Draghi's speech will be "very" hawkish. What gives me more confident to put this trade on is because the market may have oversold EUR. More particularly EURGBP (following PM Theresa May's last week comment).
Retail sentiment is short EUR (except for the EURNZD - which is due to NZ's mixed election result) so I want to go Long.
Technical levels: it is trading within the 0.879-0.88 support range (it has been a strong support since the GBP appreciation two weeks ago) and I put my SL below 0.875.
Retail sentiment is short EUR (except for the EURNZD - which is due to NZ's mixed election result) so I want to go Long.
Technical levels: it is trading within the 0.879-0.88 support range (it has been a strong support since the GBP appreciation two weeks ago) and I put my SL below 0.875.
Note
I am out at a loss. The thing is I've held on to this trade far too long and this is on the basis of a "support area" that I am far too attached than necessary. The key event was how the market reacted to Draghi's speech and it was positive but not very strong positive.Fundamentally both EUR and GBP is very bullish and yet I was to think that I can figure out which one will be stronger and that EURGBP will rebound? Pure arrogant, lazy and ignorant.
Another weakness that I realize is I often overestimate the importance of an event. I need to conduct more analysis to understand the event's historical impact and not to shoot for the star all the time.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.