One more day and this month is over…finally…for a summer month, it was very hard to trade. When we learned something this month, its that when FED raised rates, USD immediately dropped…then ECB raised rates and EU dropped…and next week BoE is supposed to raise rates, you know what will probably follow. And now imagine, if BoE doesn’t raise rates…wouldn’t want to be long on GU after that. But that is on thursday, long time for bulls before then. If GU managed to get towards the 3050-3150 range before the BoE meeting on thursday, it would be a good short, rate raise or not, doesn’t matter. Either for a scalp, before US news on friday or for a swing trade. Both EU and GU are showing a hidden bullish divergence on the chart, but looking at EG, back in the heavy demand zone, I would prefer EU over GU longs next week. Most of the time when EG goes up, its because pound is dropping, not because both EU and GU are strong. And if nothing significant changes on the EG chart until thursday, it might spike up after the BoE meeting. But we have a lot of news next week, pretty much every day, so it should be scalper’s heaven. All starts with chinese manufacturing on monday, which will be important for EURO, as we Europeans are fully dependent on the commies, sadly. 😉
