They wanted to keep it above that level to protect their export industry and have come into the market to intervene a couple of times as this pair moved down close to that level. However, this last time there was no intervention and as the market moved through whatever support there was at 1.5000, there was nothing but sell stops placed by traders who thought that the central bank would come in again to buy.
That was not a bad trade as it worked quite a few times before this last test. But this is a good lesson on why using protective stops on all trades is the smart play. Even when you think you have central bank support on your trade, you should place a stop in the market when you have an open trade. We cannot control what others do, but we do have control over our decisions and using a stop to limit our losses is a must. Especially when you think that you have a sure trade in the market. Expect the unexpected and you will very rarely be surprised.
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