A Case for a EUR/GBP implosion

It was under .9000 when I woke up this morning. I got in at .8985, stop @ .8900
Was looking good for a while until BOOM. (n)

Your trade is looking good. You still short? (y)


Peter

Yeah sort of. I tend to take some much shorter duration type trades in isolation in order to build a fat reserve. Just added another short @ 85/87 only looking for 10.
 
LOL

People have short memories. Look at where it was back in Jan or a year ago. The euro is stronger now than it was then but it drops a few points and people claim it's doomed. Sure makes good trading though.

Peter

Still think anyone long EUR these days is absolutely insane but that's just my opinion. What if you wake up the next day and there's a 500 pip move in USD/EUR? I guess there's always SLs but still I'd rather not take the chance.
 
LOL

People have short memories. Look at where it was back in Jan or a year ago. The euro is stronger now than it was then but it drops a few points and people claim it's doomed. Sure makes good trading though.

Peter

there is cultural anti-euro bias in the anglo saxon countries, right through all levels of society including financial journalists who are very unprofessional when reporting on the euro and can't bring themselves to take a rational view, which is all great stuff for a contrarian p.o.v
 
there is cultural anti-euro bias in the anglo saxon countries, right through all levels of society including financial journalists who are very unprofessional when reporting on the euro and can't bring themselves to take a rational view, which is all great stuff for a contrarian p.o.v


Yeah :LOL: we spent decades kicking ass all around Europe, so the crafty buggers decided to try invade in a different way under the pretence of a Common European Union. Thankfully Thatcher saw through their plot and put a stop to it in time. Can't wait for the day when the experiment does all go tits up!
 
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On an idealogical level I'm neither for or against the Euro; in fact, have a single currency is probably quite a good idea for trade.

However, on a practical level I am so glad that the UK is not in the Eurozone - if you can't understand the problems of the Euro presents then I'm flabbergasted that you are still trading it; but I guess there's actually no requirement to understand macro issues to make money in the markets.

Taking a contrarian POV is fine if you get it right - but what if people think it's a piece of sh*t because it is a piece of sh*t? Will you buy it just to be contrarian?

Also, how do you actual know that is the majority view and that your view is contrarian?
 
It would certainly be nice for holiday makers if it got back to 0.7 or below - as it was for most of 2004 through 2007. I think it is just as likely to get to parity with the £ as it has been try to reach since the beginning of 2008.
 
LOL

People have short memories. Look at where it was back in Jan or a year ago. The euro is stronger now than it was then but it drops a few points and people claim it's doomed. Sure makes good trading though.

Peter

and the Euro has been as low as circa 80 cents to the dollar which together with sterling are the real basket case currencies. I'll bet a few in the USA admin are doing their nut with the news rates have been raised by the ECB. I reckon this is one economic war too far for the USA, they appear to have finally given up with the phoney rhetoric versus China..
 
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why is more qe unlikely? mk already said rates weren't going up until unemployment is down....and thats even before the gov let half the public sector go

china is behind the euro now, officially admitted

so what is the bullish case for the £??

Them Chinese must be loading the boat with all these cheep euros
 
Well, i come back weeks later and everyone is shouting out thier oppinions on what is the fundamental cause of this decline which was anticipated before the first leg even started. The true answer is non of what was stated, It is the 'mood' of the market was at a turning point. Regardless what news comes out, News or economic data almost always disagrees at peaks and bottoms with subsequent price action. Its only after the declines have started does the news and economic data try to catch up with the market because the reports that people wait for every month to help them anticipate market action is a RESULT of market action rather than the contrary. When people are optimistic, They regard bad economic data as irrelevent and look for reasons to buy which eventually strengthens the economic atmosphere, havent you ever read "Market rallies despite (insert favorite report)" .The opposite is true when people are pecimistic. These trends in market 'mood' are patterned and they happen at all degrees, YOU anticipate future economic conditions, not only that but with a high degree of confidence. This approach to the market has least room for failure. so instead of looking at things that are irrelevant to market movement focus on the underlying reason for market movements which is the markets mood. Learn the Elliott wave, It will be a brainteaser at first but once you get it you'll have it forever. It will certainly make you the best trader you can possibly be, But you'll never grasp it if you dont let go of old beliefs, all that is is excess mental baggage that belongs in the rubbish bin of history.

Regards,
Ahmed Farghaly
 
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Interesting post there, Mr. Farghaly. I already know quite a few people who consider the market to be a living entity... that loves to make them suffer! Hehe, just kidding.
 
Well, i come back weeks later and everyone is shouting out thier oppinions on what is the fundamental cause of this decline which was anticipated before the first leg even started. The true answer is non of what was stated, It is the 'mood' of the market was at a turning point. Regardless what news comes out, News or economic data almost always disagrees at peaks and bottoms with subsequent price action. Its only after the declines have started does the news and economic data try to catch up with the market because the reports that people wait for every month to help them anticipate market action is a RESULT of market action rather than the contrary. When people are optimistic, They regard bad economic data as irrelevent and look for reasons to buy which eventually strengthens the economic atmosphere, havent you ever read "Market rallies despite (insert favorite report)" .The opposite is true when people are pecimistic. These trends in market 'mood' are patterned and they happen at all degrees, YOU anticipate future economic conditions, not only that but with a high degree of confidence. This approach to the market has least room for failure. so instead of looking at things that are irrelevant to market movement focus on the underlying reason for market movements which is the markets mood. Learn the Elliott wave, It will be a brainteaser at first but once you get it you'll have it forever. It will certainly make you the best trader you can possibly be, But you'll never grasp it if you down let go of old beliefs, all that is is excess mental baggage that belongs in the rubbish bin of history.

Regards,
Ahmed Farghaly

You missed out the single most important concept were the Euro is concerned; politics..Despite the USA's best efforts the Euro will not fail ...
 
Well, i come back weeks later and everyone is shouting out thier oppinions on what is the fundamental cause of this decline which was anticipated before the first leg even started. The true answer is non of what was stated, It is the 'mood' of the market was at a turning point. Regardless what news comes out, News or economic data almost always disagrees at peaks and bottoms with subsequent price action. Its only after the declines have started does the news and economic data try to catch up with the market because the reports that people wait for every month to help them anticipate market action is a RESULT of market action rather than the contrary. When people are optimistic, They regard bad economic data as irrelevent and look for reasons to buy which eventually strengthens the economic atmosphere, havent you ever read "Market rallies despite (insert favorite report)" .The opposite is true when people are pecimistic. These trends in market 'mood' are patterned and they happen at all degrees, YOU anticipate future economic conditions, not only that but with a high degree of confidence. This approach to the market has least room for failure. so instead of looking at things that are irrelevant to market movement focus on the underlying reason for market movements which is the markets mood. Learn the Elliott wave, It will be a brainteaser at first but once you get it you'll have it forever. It will certainly make you the best trader you can possibly be, But you'll never grasp it if you down let go of old beliefs, all that is is excess mental baggage that belongs in the rubbish bin of history.

Regards,
Ahmed Farghaly

Looking forward to your detailed forward price projection journal where everything is known in advance. No really I am. If you can do this, that would be great.
 
BlackSwan, the USD and EURO are connected at the hip. They always seem to fluctuate off of each other and then America seems to misplace a few trillion dollars to the IMF bank or something. :D

If anything, both currencies would completely fail together. But, of course, that's just an opinion!
 
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