Should You Buy EURUSD Or Dump It This Week?

Did you trade the 162 pip weekend gap on EURUSD? Trading weekend gaps is one of the most sure shot trading strategies. Why? Because almost more than 90% of these weekend gaps tend to get filled. You should also keep this in mind that almost 85% of these weekend gaps tend to get filled within 24 hours. This is precisely what happened with EURUSD. This 162 pip gap got filled within 24 hours. EURUSD infact moved up fast 280 pips. So if you had been vigilant, it was an easy 280 pips made within 24 hours. Keep this in mind that when price moves fast in one direction, it stutters and cannot maintain the momentum. So it mostly reverses and starts moving in the opposite direction. This is precisely what EURUSD did. It rose 180 pips then it started to fall and

Now the Greek situation is making EURUSD tricky to trade especially for this week. Foreign exchange strategists advise dumping the euro following Greece’s landmark referendum on Sunday, regardless of the outcome.

A “no” vote will produce the messiest scenario, but a “yes” vote is just as complicated because it would deepen the political crisis before alleviating the financial one, explains Kathy Lien, managing director at BK Asset Management.

So be careful this week especially don’t keep your EURUSD trade open over the weekend. The yes vote can make the market exuberant but then when the reality sets in you will find EURUSD falling like a brick.

Amid Greece’s Sisyphean drama, the euro has been like a brick—you can throw it, just not very far. But that’s only temporary, Goldman Sachs says, sticking with its call for near-parity with the dollar.

Some say Greeks have imperiled the whole of Europe. Greece joined EURO zone in 2001. It’s inclusion was a hasty decision. Greece was having budgetary problems. It fudged the figures and hoodwinked the EC authorities. Now is the pay day time.

Don’t worry. It’s not the end of EURO as a currency. A bailout deal between Greece and its creditors is almost finalized, Greek Finance Minister Yanis Varoufakis said Friday, hinting that the two sides have been holding private discussions this week.