Friday, April 06, 2007

Tonight is the Night...The NFP Night

Salam,
Euro rallied 90 pips higher overnight against US dollar, broken out of its inverse head of shoulders, despite lack of economics and fundamental indicators. From my three years of trading forex, I notice that very often when liquidity in the market is thin and prices have been stagnant for couple of days, and devoid of any indicators, might as well produce a big move. How can this happen anyway? When traders are away, these that what we call 'the big sharks' are going to play/twist the market by putting their large funds in to the market, making prices go up/down mercilessly by taking many stop-loss figures above or below the resistance/support lines along the way. It's like 'when you pop, you can't stop'. It's brutal..

I will wait for NFP anyway to trigger a new trade. Remember, today is Friday, the profit-taking day where yesterday's big winners will bail out to protect their profits just in case the news is better than what the market expects. See ya!

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