Trading trends back from hols post

Well, I have not been trading that much throughout August after a tricky end to July and, as August was a low volume month with lots of traders going on holiday etc… However, towards the latter part of last week and this week I have begun trading the EUR pairs again. 

I had my eye on a couple of long term trend lines on the Daily EUR/USD charts and I was aware that any long positions I took would be affected as soon as they reached these levels. As the news approached Friday and traders looked to second guess the Bernanke speech, the EUR/USD rose on expectations that Fed printing would pressure the dollar once more. 

However, looking at the UUP which is a Bullish Dollar ETF, I noticed that the trend line had acted as support and, over the last couple of days, we had been rising from it. After the news I remained Bullish the Dollar. If the dollar remains in a Bullish trend I figured that the EUR/USD trend line would act as even greater resistance and a definite act of QE would be the only way we could get the Euro to be strong enough to get through it on Friday. So I was happy to re-implement a short right at the resistance line. On my first attempt I was too quick to move my stop down to lock in some profits. Then I made the mistake of not waiting for a support area to give way. I am hopeful that my current short is both in a good place, with a big enough stop, and that I can watch the EUR/USD come back down to test yearly lows. Fingers crossed!

Gold also didn’t break a trend line in the GLD ETF, and so I figure that come Tuesday that Gold could once again turn down. At the time of writing this the market was definitely going sideways, so I am waiting for some sort of confirmation, which may not be realised until post Sept 12th.

Finally, happy to see XEL break above an important trend line trend line. Looks like we continue higher from here.

Trading Trends