BK EUR/USD Big Trade +50

We are out of EUR/USD Big Trade for +50

BK EUR/USD Big Trade -- Move stop to 1.0915 to lock in 50 pips

***Update on 3/23 -- BK EUR/USD Big Trade -- First Entry TRIGGERED --

BK EUR/USD Big Trade – Time to Sell

The Trade:

SELL EURUSD

Place Order to Sell 1 Lot EUR/USD at 1.0965

Pace Order to Sell 1 More Lot at 1.1127

Stop at 1.1235

Risk on our BIG TRADES is large, so make sure your position is small.

We will manage the take profit dynamically and send out alerts on when to take profit and/or move your stop.

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Revisiting Our Monetary Policy Divergence Trade

It’s a great time to start scaling into fresh EUR/USD short positions. Today’s FOMC statement was clearly less hawkish that investors had anticipated leading to a sharp slide in the U.S. dollar but nothing has changed – the Federal Reserve is still on track to raise interest rates this year. Policymakers may have lowered their growth and inflation forecast and changed the “dots” that measure individual expectations for rate rises but we never believed that the Fed would raise rates in June. A September hike on the other hand is almost assured.

Everything that Yellen said in her press conference points to tightening this year. In fact she said that while a rate rise in April is unlikely a hike any meeting after that including June is possible. With 3 months to go before this key summer meeting, the central bank has plenty of time to see how data fares before making their decision, which explains why Yellen said no patience is not the same as impatience. The Fed is in no rush to raise interest rates but if data starts to improve they won’t hesitate to do so and today’s change in forward guidance provides them with maximum flexibility to make changes when necessary.

For this reason, we believe that there is a fire sale in the U.S. dollar right now and if you don’t buy in the next few days or weeks, you may regret it. We are already long USD/JPY so we are laying out our EUR/USD orders above market. Quantitative Easing in Europe has just begun and with 18 months of bond purchases ahead, the euro should find its way back below 1.05 versus the dollar.

EURUSD031815

The Trade:

SELL EURUSD

Place Order to Sell 1 Lot EUR/USD at 1.0965

Pace Order to Sell 1 More Lot at 1.1127

Stop at 1.1235

Risk on our BIG TRADES is large, so make sure your position is small.

We will manage the take profit dynamically and send out alerts on when to take profit and/or move your stop.

Swing

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