Thread: USD bears 2
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Old 02-03-2004, 00:02   #19 (permalink)
novice
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The EUR/USD sold off slighty ahead of the ECB interest rate decision.

If interests rate stay at 2% a good probability that the EUR/USD downtrend may reverese and the EUR/USD may rally strongly. Now a double bullish divergence between price and 1-hour MACD-H.

Still a small chance that the ECB may cut rates. May cause the EUR/USD to go below support at about 1.2350.

So IMHO the best trade is to place a buy stop above the relative high. If the EUR/USD rallies you will be stopped in long. If the EUR/USD continues to fall you will not be stopped in.

Other USD pairs (e.g. AUD/USD or GBP/USD should be much the same).
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