Simultaneous Release at www.thegeekknows.com
The EUR/USD went as low as 1.4563 today.
Immediately i thought of the countless readers that will be scratching their heads.
The Geek said it may range. Why? Why?
Fast forward to 12 hours later.
Dear readers, it is important to remember that forex is never about believing someone blindly.
If you read an article, you either agree or disagree.
Either, you got to have reasons from your own conclusion.
Definitely not because some geek from halfway round the world said so
Only this way, can you learn to be a better trader. Only this way can we learn together to be better traders!
I did have readers asking me, didn’t you say it may range. Didn’t you?
Yes i did say it may range and i am not the market so i am definitely not 100% right.
Show me a trader who is 100% and i will call him a bluff
Nonetheless , i am right this time apparently and the currency pair ranges for now.
We must all remember that forex never stick to resistances and supports to the very single pip and overflows should be considered.
After overflowing to 1.4563, the market decided that it is simply not ready for lower prices now and makes it’s way back above 1.4600.
If you did not have enough allowance for the price movements or your money management is poor, you will find yourself panicking often, closing loses often only to find that the price makes it back and beyond your initial trades.
Our main market clue for sentiment, the S&P500, is enjoying a rally and will probably put bullish pressure on the EUR/USD
The equities bulls seem determined to bring the S&P 500 up, perhaps assisted by the positive sentiments streaming out of the post G20 excitement.
Oil remains around the bottom support of $65 while gold likewise around $990.
This currency pair may range more as long as we do not decisively clear the 1.4600 or 1.4800 regions.
In the meanwhile, the previous high of 1.4719 area seems to act as the de facto middle point for now.
Often, the price reacts to it.
As long as we do not break any of the critical levels of the various market clues that we pay attention to, or we do not have any adverse news like a bankrupt major bank or some rouge missile flying, it is unlikely that we see drops beyond 1.4500.
Remember, read this article and agree or disagree based on your own reasons
You can visit my blog for more EUR/USD and forex articles.
Discuss with me over at forums.fxinstructor.com!