Continue reading...As we end 2011 the Eurozone debt crisis has taken centre stage. Even for the most hardened technical trader it has been difficult to ignore the fundamental noise emanating from Brussels.
This reached fever pitch after the EU summit on 8-9th December was deemed a massive failure. So as we enter a New Year, traders who want to keep their profits need to get used to fusing fundamental and technical analysis when they trade the markets.
For example, EURUSD dipped below 1.30 on 14th December. This was a huge move since it was the lowest level for the single currency for 11 months. 1.30 was like the Rubicon for the FX market – it was considered a point of no return. Not only was it of major technical importance but it also had fundamental influence; once the euro dipped below this level it suggested a couple of things: 1, the debt crisis had escalated and 2, that market sentiment towards euro-based assets had taken another turn for the worse.
This is fundo-technical analysis in action...
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