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THE EUR/USD threw a temper today and dipped 70 pips within 15minutes during the ASIAN SESSION.
No doubt any folks gambling on a long with up-sized risk meals would have dropped their jaws.
Let’s take a look at the front page news!
EU’s Almunia said eurogroup to discuss euro appreciation ahead of the G7 meeting.
European Central Bank President Jean-Claude Trichet joined in the party later and said “disorderly movements” in exchange rates have “adverse implications” for economies.
The end result?
The currency pair looks battered and exhausted. Bulls are having difficulty holding on to their grounds no doubt.
Parties aside, from a bull’s view point, i would be concerned about the condition of our market clue, the S&P 500.
US manufacturing dropped and jobless claims went up. Around the world, missiles are flying and water rising. Most unfortunate and negative in sentiments.
Oil hangs around $68 and gold left the $1000 club
I said that the currency pair might range as long as we held above the critical levels of the various market clues.
And it did, or tried at least, breaking above 1.46 and getting slammed back down as negative news starts to churn out like an assembly factory.
Now that our main ally, the S&P 500 had retreated pass the critical zone, conditions seems to be heading towards a drop.
Nonetheless, the market is never 100% predictable.
If non farm payroll shows a worst than expected result, it may be the final blow.
Nothing much to stand in the bears’ way till the 1.44 region.
If after today’s practical lesson in setting stop losses does not wake you up, go to the forums and ask how many folks lose their accounts today and how did it happen.
The new and FREE Left for dead campaign is great and gave me a few scares. Did not manage to complete it as i was mobbed in the second stage. Am not going to try today because i need to have a serious discussion with Ms Sleep.
Ah, the weekend is almost here.
Trade safe ok?
You can visit my blog for more EUR/USD and forex articles.
Discuss with me over at forums.fxinstructor.com!