EURUSD is showing a decidedly bearish pattern on its 4-hour chart of lower highs and lower lows since the collapse of the largest global derivatives broker Man Financial in late October. For all the manic market headlines out of Europe, and worse rumors - Germany is secretly printing marks as a primer for exiting the ECB - it is the simple pattern of highs and lows which professionals put the most weight on. While the cause of price action is often an intangible, how the market behaved, or the affect, never is. For all the different technical indicators and overlays available to analysts none are as reliable as the 4 simple determinants which make up what we call market generated data: i.e.: the opening price, the high price, the low price, and the closing price.
Trading is a risky endeavor and not suitable for all investors!
To see Jay Norris analyze live markets during U.S. evening hours go to Live Market Analysis. Jay is Chief Market Strategist at IBTRADE, and the author of Mastering the Currency Market, McGraw-Hill, 2009.