Somebody said that after MR.Trichet said that they would hold rate at 2% in Feb and then they will decide whether they will cut 25bps or not in Mar,so that support EUR to stronger than other currencies.But I thing this is not enought strength to support EUR because their economy are in terrible recession.But,Why after rate cut,EUR still strong???
intradaybill
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Because the cut was already priced in. Market needs surprise to prop the dollar under extreme budget deficit conditions in US.
FXSCALPER2
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On rate differential alone, it makes no sense for the eurusd to fall, of course.
Mr Blueday... if you thinking that the market simply just moves in a predictable fashion then you are barking up the wrong tree... i.e when the ECB do this... then this happens... etc etc...
If it was that obvious then everyone would be trading forex....
If it was that obvious then everyone would be trading forex....
That's right, there is no logical reason for the market to favour the dollar, particularly. The currency is, almost, borrowed up to the hilt and the next step for both Obama and Gordon Brown will be to start printing money. Frankly, Obama is an unknown quantity. I'm in dollars because the market is shorting European currencies against it but it seems to me that we are all in the same boat on a logical basis and the fortunes of each are decided by market sentiment.
Split
Personally I am not convinced, it "appears" that dollar strength lately "might" have come from risk aversion.. but again its not that obvious and you should avoid making generalisations like Bloomberg and Co tend to do... after all they dont stand to loose any money if they are wrong..
You seem to want concrete answers to why things happen all the time... the key in this game to make money ... FULL STOP... if you try and understand whats really going on you will probably end up CRAzY
or you could go and work for Bloombergs or Reuters etc... and make up some **** and bull about why the markets moved today... ...
20 Jan EUR/USD 1.3030
EUR/USD
Open 1.3094 Close 1.3067
High 1.3380 Low 1.2975
Last week the EUR/USD moved inside the 1.3020 - 1.3430 series. Volatility made it likely to achieve good tentative profits. The market is looking for long-term path, which in the short term will be helpful to swing trading. Today opened with downwards low of 70 pips to the 1.2975 level. Usually, such actions are rewarded subsequently. The rule has met now. The overall situation for today is with declining potential, with initial targets towards 1.2950, followed by 1.2750. On the four-hour chart, the currency pair found confrontation at levels around 1.3385 with three failed tests of it so far. This shows that traders' outlook are still in favor of the Dollar. Today the new U.S. president Obama's stepping in the White House expected, which should start affecting the market. Technical indicators also show uncertainty on a daily basis as MACD is around the zero line and RSI around 50. If we consider the Fibonacci principles, we may find that the price in its corrective movement had reached a level of 78.8% at 1.3020, and then attempt to move upward at that time has stopped at 61.7% at 1.3380.
TR levels: 1.3165 1.3285 1.3385
TS levels: 1.2950 1.2845 1.2750
Trading range: 1.3040 - 1.2980
Trend: Downward
Sell at 1.3030 Stop Loss 1.3060 Target Price 1.2990
EUR/USD
Open 1.3094 Close 1.3067
High 1.3380 Low 1.2975
Last week the EUR/USD moved inside the 1.3020 - 1.3430 series. Volatility made it likely to achieve good tentative profits. The market is looking for long-term path, which in the short term will be helpful to swing trading. Today opened with downwards low of 70 pips to the 1.2975 level. Usually, such actions are rewarded subsequently. The rule has met now. The overall situation for today is with declining potential, with initial targets towards 1.2950, followed by 1.2750. On the four-hour chart, the currency pair found confrontation at levels around 1.3385 with three failed tests of it so far. This shows that traders' outlook are still in favor of the Dollar. Today the new U.S. president Obama's stepping in the White House expected, which should start affecting the market. Technical indicators also show uncertainty on a daily basis as MACD is around the zero line and RSI around 50. If we consider the Fibonacci principles, we may find that the price in its corrective movement had reached a level of 78.8% at 1.3020, and then attempt to move upward at that time has stopped at 61.7% at 1.3380.
TR levels: 1.3165 1.3285 1.3385
TS levels: 1.2950 1.2845 1.2750
Trading range: 1.3040 - 1.2980
Trend: Downward
Sell at 1.3030 Stop Loss 1.3060 Target Price 1.2990
@normbeef: I never read the analysis of Bloomberg or any one else,but,without it,you can do nothing :whistling Don't talk to me that you just use TA for your trading,because you will kill yoursell by this method
Your missing the point my good fellow... you keep going on about "cause" you keep asking for explainations about why the price is moving etc...
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