Remember I told you a couple of days ago that the EURO was strong.
In trading you never listen to opinion but rather watch whatís going on. Is this the start of something bigger in the first part of next year for the EURO?
That big stall we had in the US session before Christmas due to Fiscal Cliff negotiations breaking down has started interesting moves.
The US Dollar has suddenly strengthened and is holding. Underneath the EURO is still strong against weaker currencies but for the moment the US Dollar is king.
So Whilst EURJPY is moving up, USDJPY is flying. Whilst EURAUD is moving up AUDUSD is falling hard.
So for the moment Iíd be more interested in USDJPY rather than EURJPY.
If all of this is a reaction to the Fiscal Cliff then itís safe to assume that nothing will get done over the Christmas period so the US Dollar could continue its strength and Iíd look to trade it against weaker currencies.
If they sort out the Fiscal Cliff and the US Dollar weakness then Iíd switch back to the EURO against the weaker currencies.
I spent all day Christmas day with my family. I spent half of Boxing Day with my extended family yet I still managed to follow and trade the markets. I just fitted it in and around my life style for those 2 days. All the time managing positions with stops based what was going on intraday when I could check my screens.
Anyone can do that during their normal working life.
The EURUSD wants to move up because the EURO is strong but the weak S&P futures keeps holding it back by strengthening the US Dollar. Thatís its big problem at the moment. Thatís why its lagging other EURO crosses.
This is how I played the strong Euro.