Day 322: Draghi gives strength to dollar

Profit: -$1.61 Total: $1,361.06

Draghi had an ECB conference where his tone was mostly neutral with a slightly dovish flair. He didn’t mention anything about the dangers of Euro’s strength and the need to push it down but he did say they were ready for any stimulus if needed in the future. Europe’s growth is steady and moderate while inflation remains low, no new news. After Draghi’s speech the EUR/USD had a huge spike down but quickly found support in the  1.2800’s area and plateaued for the remaining NY session. Draghi’s speech wasn’t too powerful to knock the Euro down, however, it didn’t provide any strength for the currency. I’m still convinced it can drop a bit more.

The dollar’s spike wasn’t surprising but happened to quick for me to make any logical moves. I was also very hesitant to make any trades while Draghi was speaking. I was waiting for a pullback that never happened and prices plateaued during the end of NY. Sure I wanted to long the dollar against a multitude of pairs but I wasn’t willing to make any irrational trades. Opportunities will come and rushing trades will only burn my equity. Dollar seems to be pulling back a bit during Asia so I’m sure the market will present more chances on a dollar long opportunity.

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