what crazy upmove? EURUSD lost 900 pips in 14 trading days since the recent highs and only recovered about 200 pips off the lows at 1.42. Nothing spectacular. Actually, I might dump my last couple longs if we don't get above 1.45 quickly.
This euro rally looks like it has the feet - it will definitely cross 1.45 today. But the timing this rally is what drew my attention - i read somewhere that you should expect erratic swings during the holiday period so this might be just that, or it could be profit taking on euro shorts. I doubt this has any fundamental reason supporting the euro rally.
Yep, it does look enough strong to go and test the 1.45 area. Maybe today. I wouldn't use the the word "definitely" though. Markets have a tendency to prove you wrong when you use that language. What you read was wrong, holiday trading is not more erratic than the rest of the year. Take a chart of the last 10 yrs and see it for yourself. People need to find dozens of reasons to justify the failure of their market analysis or just to explain something they don't understand. You don't need fundamental reasons for the market to fluctuate. And this has nothing to do with Xmas either. All we need to know is that the 1.42/43 area was attractive to longs and to shorts covering their positions. Good luck and good trading.
You read somewhere? Look mate, don't put any stock in moves that occur in liquidity like this. Once the new year starts, it could be the same game, or a completely new one. There is no way to tell.
I see, so thin volume while traders are taking a holiday over the Xmas and New Year doesn't affect volatility?
I wish it didn't, I just logged on, made 2 trades, got stopped out on both of them, and closed the platform again! That's the way (not) to do it! :eek:
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