Something is odd about the currency markets at the moment.
News, is not having it’s usual affect. EURUSD kind of got stuck between to resistance lines (at the moment). But on the 5 min chart appears to be a lovely head and shoulders formation. Worries about the bombing in Boston USA seem to have made the markets quite jittery, however, it does seem to me this is an isolated event.
At present I was going to sit back and watch the carnage, thinking about a sell at this point. Then I read that Commerzebank are looking to short EURUSD at 1.3150 (where it is now). Which does make sense to me. I would look for a retracement now.
I have also noticed in the news there has been a lot of talk of EUR shares dropping due to worries about employment. (clicky). Now we all know that employment is after all one of the bedrocks of a currency. USD I am also concerned about as it seems to me that there is quite a lot of negative data floating around. HOWEVER, there is some positive data, including employment for USD which can materialise in increased GDP so my long term trades are still bearish on EURUSD and I think I will introduce a short term trade selling at 1.3150 allong with Commerzebank who have probably invested hundreds of times what I have into the trade.