Thursday, December 20, 2012

Will eur/usd reverse now

After going up for quite a long time eur/usd pair saw a sharp reversal yesterday. A lot of folks have been claiming that this is the end of the move, but I do not think so. I do not have many proofs for this argument, except one and that is: it is not logical to close all of your positions if you have been going up in some direction (in pre holiday season). I have seen this a dozen of times. Markets usually rush in some direction before and after Christmas ignoring most of the news and only with the first days of New Year reversal takes place.

So, I do not believe eur/usd will reverse now. Therefore, I am holding a very small long position in the pair. Took some partial profits though! I hope to close the entire position before Friday close. Not sure about working hours during holiday season. Have to check them with my broker. Better safe than sorry! You do not want to have a position open and not being able to close that just because your broker is not working. 

Anyways, eur/usd will probably continue going up. That’s it! See you soon.