Update an hour later… looks like EURUSD is going lower people. The dollar index has broken above the channel.
Well, that’s why you have tight stops. Yesterday’s EURJPY move was a fail, a classic false signal! Anyway – I thought I’d talk about last nights massive USD move. EUR plummeted. Because of a speech. Speeches, on the whole actually do not cause a currency to be permanently moved into a new channel from my experience the currency will return to price. That’s unless the speech is about ACTIONS. I would imagine this morning the EUR will be encouraged with a little push from the ECB to get back to around 1.3100. I’m also going to be looking more at the dollar index in relation to the S&P500 next week.
In fact look at the bearish trend the DXY is in! This is daily but it does show you what is going on. Could DXY break north of the trend now?