Good evening all.
So this is the second time I have witnessed price action in the DXY continuously show strength. Now I am always reluctant to take trades on the basis of momentum. I look for retraces and wait for confirmation then ride the new wave of momentum as opposed to jumping on to the train and hope it lasts.
Eurusd has been taking a beating. This reveals a lot about where traders heads are at. Dollar dominance has been the story and it’s continuing.
Now I decided to open two shorts on eurusd. I did this on the premise that Dxy will continue its move higher. Now when you come across an asset that is showing none stop support and liquidity is coming in, it’s a sign that the move is psychological. There is a reason no retrace is happening with Dxy. So all we can do is take trades on the basis that it continues.
Again we are always dealt with this idea of “what if the trade does not continue in our desired direction”
You heard me say it before…
It can only go up or down. Which side you are on for the longest which is making you money…take it. If it’s burning money close it.
The trades above are not your normal trading opportunities I like to take, however when you have been focusing on an asset you start to gauge a “feeling” about the strength behind its move.
When you get that feeling.
You pay to play.
Mad love
T
