Simultaneous Release at www.thegeekknows.com
And so we have. A new high of 1.4821.
This currency pair has bulldozed stops laid all along 1.4719, 1.4800 in a matter of hours.
If you are wondering what is wrong with the EUR/USD, you may have to look beyond this currency pair.
We should be asking what is wrong with the US dollar?
Pull out a US Dollar index chart and we can see the decline of the US dollar.
The increasing deficit of the USA may have spark new sentiments towards the US dollar.
Having said so, let us take a look at our usual market clues.
The S&P 500 looks like it is entering into a consolidation mode and this may suggest market apprehension.
If so we may expect a similar behavior with the EUR/USD.
Gold has shot up to the top region of it’s range around 1015. It has been reported that China is considering purchase of IMF’s gold. This may add selling pressure to the US dollar.
If bullish momentum continues, a clear break of 1.4800 is needed before the high of 1.4866 comes under challenge.
Bears of this currency pair will need to move away from 1.4800 and challenge the high of 1.4719.
On a side note, i have a few readers telling me how they blew up their margin accounts with the sudden bullish rush.
It is sad to hear this as money is never easy to come by.
Be it if you are a speculator or investor of forex, employ proper money management.
You can visit my blog for more EUR/USD and forex articles.
Discuss with me over at forums.fxinstructor.com!