Well that escalated quickly. Our short EURNZD complex has ballooned to 1,200 pips of unrealized profits. We've revised our targets after our "primary target" (as seen on the charts) was achieved. We're keeping this new "secondary target" private. Just 2 days ago we penned a note on our Trading Journal that we were heavily short the euro ahead of this Thursday's December ECB event risk.
Over the past 50 hours, European data came out soft, priming market sentiment for tomorrow's event. We updated readers Monday about our positions, how and why we built up our short exposure on the euro, particularly the EURNZD.
We're now less than a day away from what will be the second most anticipated ECB meeting for the whole of 2015. Expectations are for a 10bp rate cut to the bank's deposit facility and some sort of increase in its PSPP (QE size and breadth). We're not going over this as we've already done so on previous occasions.
This note is just a brief update before we maintain a radio silence perhaps until the weekends. For those who have been following our progress starting 3 weeks ago, you'll understand that these trades are indeed legitimate and public. Very few traders are able to achieve what we have, let alone going public on those ideas.
We're still maintaining the 3 shorts on EURNZD. Early on Monday, we went short EURAUD on a classic pullback into our "short term selling zone". Recall that we booked 280 pips on EURAUD a week and a half ago.
EURAUD remains in a strong downtrend and will likely test the 1.44 handle before catching any so officiant bounce. The combination of a weak euro and stronger data out of China has greatly suppressed EURAUD this week. This trade now sits on 280 pips of unrealized profits.
The long term trend for the euro is down. With this in mind, we're looking to price action in the context of tomorrow's ECB outcome to decide if we should revise this view. Should readers wish to keep abreast of our shenanigans, they can follow us on Facebook where we're actively publishing new content.
Subscribers of our Premium Signals Service have been readily blessed for November and December so far. Our goal is to have each subscriber throughly enjoy their Christmas holidays know that we've settled the trading for them.
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