Quote of the day: The only hope is that our civilization will collapse at a certain point, as always happens in history. Then, out of barbarity, a renaissance. — Pierre Schaeffer
EURUSD
Trading strategy: standing aside
It’s hard to describe yesterday’s markets disaster. The DJIA fell 1000 points erasing this year’s gains before recovering, EURJPY fell 1024 points, GBPJPY fell 1250 points, the zombie EURCHF fell 340 points, the euro reached a fresh low at 1.2520 and cable dropped below the 1.5000 mark again, printing 1.4595 earlier today. The U.S. stock market’s rapid fall was accelerated by program trading, following a large decline in Procter & Gamble. There are talks of “fat fingers” trading – large bank selling 15 billion worth contracts instead of 15 million. Speaking of euro – it continues to face downside pressure but managed to recover some lost ground – currently trading near 1.2700. There’s still a long journey until getting into a safer zone, eventually confirming a switch in short-term’s sentiment. Meanwhile, minor rallies will probably trigger more and more selling and don’t forget today is the NFP: but what’s a NFP 80 pips spike compared to a Black Thursday? Current exchange rate is 1.2674 @06:45 GMT
Support: 1.2600, 1.2500/15 and 1.2400
Resistance: 1.2700, 1.2750, 1.2800 and 1.2900
Market sentiment: long term – bullish, medium term – bearish, short term – bearish, intra-day – bearish
- EURUSD 4hrs 5-7-2010
Others:
- EURJPY daily chart 5-7-2010
- EURCHF 4hrs chart 5-7-2010
- XAUUSD 4hrs 5-7-2010
Have a great day and play it safe!
USD should do well against the GBP today after election result.
Good idea to stand aside, not to mention it's Friday. Also, I love the quote of the day, brilliant.
ugly days at their best and the madness doesn't seem to end soon. Chart spikes nowadays should be recorded on video. In fact I recorded few minutes of GBPJPY, EURJPY and S&P charts yesterday, keeping the clips as 'souvenirs' :-)