Friday 25th April
The Euro fell nearly 200 points against the USD yesterday…..a change of Trend or a healthy correction? We favour the latter but the discipline of the trading model has enabled us to pick up a handy little profit on this dollar positive move. Initially it was a weak April IFO number out of Germany that triggered the move but later in the day signs of resilience in the US labour market (initial jobless claims) fuelled the dollar buying.
We have to accept that the market was ripe for a correction and yesterdays events were ideal to start the move. A reality check set in as March new home sales came in below expectations and since then some of the lost ground has been taken back.
'Golden week' Japanese holidays next week and also loads of US economic releases.
Keep to the discipline of the model and its T/R breaks and above all exercise that money management plan….happy trading!