Wednesday, June 24, 2009

My first successful EUR/USD Fib trade on the FOMC rate decision, and my broker freaks out with 18+ spread

Wow! I didn't even know you could make a title that long! You learn something useful every day, lol.
Let me start by what happened first with my broker freaking out a few minutes before the FOMC interest rate decision because it's kinda funny. FXCM always claims to have tight spreads, which is mostly the case, that's why this was such a rare sight!

Moments before the rate decision was announced EUR/USD spreads were as high as a whopping 18.1 pips! Damn, I've never seen that before. I think this was caused by so a lot of people buying the USD at the same time that they just couldn't fill all the orders in time. Luckily I was already on board about 20 minutes ahead of time. Then moments later it seemed like someone was falling of a cliff it went so fast.

Looking back, I bailed out too fast, and could've ridden the second wave downward. But I was happy with my 37.6 pip profit!

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