This G8 meeting will last 3 days and end Sunday. The statement following will be heavily watched as some type of collective intervention or other announcement could be in store!
This is a good reason not keep positions over the weekend - even though I have not heard that G8 will present anything special. They tend to leak information if they do - not to surprise the markets. If they don't do anything then don't get surprised if we trade lower.
A lot of the people "buying" the euro in situations like today's are those who went short recently and are now cashing in their profits. When you find talk of a pair being "oversold" or "overbought" it means that there are heaps of speculative positions that have to unwind sometime, this unwinding forcing a significant retrace against the current before the underlying trend can resume.
Thank you for helping out Robert, much appreciated - Yes I agree with Robert. We also have "real money" flows which are export and importers which secure currencies at interesting levels and we also have the retail crowd that want to fade this move. They believe that the market is oversold and want therefore a piece of the action - they buy when we create new lows.
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A lot of the people "buying" the euro in situations like today's are those who went short recently and are now cashing in their profits. When you find talk of a pair being "oversold" or "overbought" it means that there are heaps of speculative positions that have to unwind sometime, this unwinding forcing a significant retrace against the current before the underlying trend can resume.
Thank you Robert. Really appreciate your help to clarify my doubts.
how come you suggest to have the stop at 62 and not 60 ?
to be little more safe because the swing high is 1.27582 and my this time/price techs can penetrate up 1.275900/1.27609 but not 1.2761 and if they penetrate the 1.2761 then forget about the 1.2660/65
to be little more safe because the swing high is 1.27582 and my this time/price techs can penetrate up 1.275900/1.27609 but not 1.2761 and if they penetrate the 1.2761 then forget about the 1.2660/65
to be more clear is that if penetration puncture 2761 then massive short covering may happen most prolly!
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Originally Posted by Gregory McLeod
- Yes I agree with Robert. We also have "real money" flows which are export and importers which secure currencies at interesting levels and we also have the retail crowd that want to fade this move. They believe that the market is oversold and want therefore a piece of the action - they buy when we create new lows.
