Thursday, December 28, 2006

Bias

Trading on a longer timeframe is something of a goal of mine to be achived next year. I follow news bits -as we all do most likely- and when I find something, which might affect the longer term bias I'm storing it in the back of my mind letting it influence my bias. Nothing for a daytrade on the 5min chart, but starting on the 60min chart I expect such bigger moves to become apparent
I just read this article about the Emirates selling US-Dollars, 2 days ago there was a news clip about the UAE Central Bank adjusting it’s reserves out of the US-Dollar as well. I also read this article about the Euro/Yen being bought through the Majors, by buying Euro/USD and buying USD/Yen, which is USD neutral for the trading firm. Still the transaction pushes Euro/USD and USD/Yen higher.

As a Euro trader it means for me, there are now 2 good fundamental reasons to see the Euro appreciate further and I would expect moves on the longside to carry further than countertrend moves down

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