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Out of All Trades as Euro Breaks 1.2500

The Euro spent most of the day on he defensive, declining to a low of 1.2398 few hours before the London close. Then at 10 AM EST, a major anti-USD rally started. The unexplained move was consistent across other asset classes, with stock markets and Gold gaining while Dollar denominated currency pairs got sold. Two stories have come out about the reasons behind the sudden Dollar reversal. Take your pick story one or story two.

I managed to exit my USD/DKK long at a small profit of 11 pips. I tightened the stoploss on my Euro short at just above 1.2500 and it got taken out (with slippage of 3 pips). Then a massive rally took the EUR/USD pair to a high of 1.2543. Overall happy that I managed to keep my losses at a minimum in such an unpredictable environment but frustrated to see the directionless market coming back. I miss October.
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JvdS87908 avatar

Go back in history on EURCHF as I mention ........  when you have a FLOOR the purpose is not to drive the price higher  but to take up any attempt to drive lower than a price .......  that is to flood the market with enough supply for any BID below a certain price .......  but they will not interfere if the price rises again due to market drive .......  that any attempt to further reduce the value will be a all the liquidity required  to supply.

fxsurprise8 avatar

I'm aware of the floor at 1.2000. I traded it live when they instituted it few years ago. But the SNB hasn't intervened in years and like I said there are no signs of intervention yet.

JvdS87908 avatar

Right, that because was not a threat to the FLOOR ........  but in the pass few months has been going down and threatening the FLOOR, quietly in small scale, I would image have been increasingly, take a look at volume increase ......  but the purpose of the FLOOR is not to interfere if is above, but rather any attempt to make it drop below a value ........ if above they leave alone ........  Jose

fxsurprise8 avatar

....what...

I was talking about the Euro move on Friday and how it is not connected in any way to the SNB. I have no doubt that they will intervene. There are rumors of 1 billion at 1.2010.

Personally I wouldn't get involved in the EUR/CHF, bank or no bank.

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