A topsy turvy slowly drawing to a close. Still the direction is a bit unclear on the euro and we havent had the FOMC minutes yet!! If euro closes above 1.4040, that would be a bullish sign for it and it could then translate into a move to fill the gap formed over the weekend at 1.4255.
As i said, a very highly volatile day and it could lead to more volatility over the coming days. Keep your stops tight and dont get greedy. The overall trend continues to be USD bullish but there would be retracements and this is what we traders need to guard against.
Europe's problems would not go away in a couple of days or a week and they are here to stay. The overall bearish trend on the euro exists but beware of retracements.
As for the GBPUSD, it has been another slow day compared to what the euro has been doing but it still has moved abt 150 pips today. But it has basically ended where it started the day and as it has been doing over the last 2 weeks or so, it has been in consolidation mode with a downward bias but the move downwards has been very slow despite bad data. I would expect more downmoves in it but as it is still tied to the euro a bit, the moves of the euro could have a great bearing on how the cable moves.
As i said, a very highly volatile day and it could lead to more volatility over the coming days. Keep your stops tight and dont get greedy. The overall trend continues to be USD bullish but there would be retracements and this is what we traders need to guard against.
Europe's problems would not go away in a couple of days or a week and they are here to stay. The overall bearish trend on the euro exists but beware of retracements.
As for the GBPUSD, it has been another slow day compared to what the euro has been doing but it still has moved abt 150 pips today. But it has basically ended where it started the day and as it has been doing over the last 2 weeks or so, it has been in consolidation mode with a downward bias but the move downwards has been very slow despite bad data. I would expect more downmoves in it but as it is still tied to the euro a bit, the moves of the euro could have a great bearing on how the cable moves.
