The Single Currency was vulnerable on Friday last in the wake of the press conference remarks by the President of the ECB, Mario Draghi, on the day before (Thursday), but because of the fall that occurred in the immediate aftermath of said statements, there was also a distinct possibility that the pair could rise again, as many such moves are overdone and shoot past the natural equilibrium level when they first occur.
The OmiCronFX Mandelbrot algorithmic routine is market neutral, which means that we never make a judgement on the direction the market is likely to go in when it starts trading for the day. Mandelbrot is designed to respond to the price action at the precise time it enters a trade.
On Friday, the day after the ECB monetary policy meeting, it turned out that the market was a little confused at the start, during the London session. Mandelbrot responded to this, and the result was two losing trades in EURUSD, but ones that were well within its risk tolerance. Then, at around the start of the US sessions, the big move occurred. It was to the downside, and Mandelbrot jumped on board. The result was an outstanding trade that compensated, and then some, for the two false starts in the morning.
Start of Winter Time in UK and Ireland
The weekend just gone marked the start of Winter Time in the UK and Ireland, which is important to know as we must configure Mandelbrot to take such things into account. Clocks went back one hour, but just to make life interesting, Summer Time, or Daylight Saving Time, will continue in the US for another week. Clocks go back the hour there on Sunday November 1st.