ECB expressed its’ ‘sincere’
desire to address the European crisis and is again willing to do anything it
takes to stabilize the region’ economy. These comments after interest rates
announcements are very important as they usually give momentum for currencies at
least for a few weeks. These are periods of time when a trader can accumulate a
big position in a currency that is about to strengthen and keep it for a few
weeks to make nice profits. That is exactly what happened in eur/usd or eur/jpy
pairs. These macroeconomic news put Euro back on its’ uptrend and this tendency
of Euro strength may continue for a few weeks.
I will repeat myself again
that one should only trade in the direction of the main trend and never against
it. So, after ECB and BOE announcements of interest rates have been made one
can expect Yen and US dollar to weaken and Euro, Pound and commodity currencies
to strengthen. Just be sure not to risk too much, nor to overtrade. These
things never increase your profits. Vice versa, it impedes you to take the best
possible trades that are on the table. Stay patient and try adding to your
position on dips.
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