Monday, October 5, 2009


And right now the bulls are winning. A mixture of fundamental news helped to boost  the Euro over the dollar, including 1) the Aussie government unexpectedly raising interest rate led to an increase in USD shorting and 2) a story was published in the UK that said several governments, including China and Russia were looking to partially replace the USD as the reserve currency for crude within 9 years. These news pieces provided the extra boost to raise the EUR/USD past key resistance at 1.4680 and up to another key resistance at 1.4720. The Euro is still overbought against the dollar but there is big money involved here that is out of our control, therefore we will take what the market gives us. I would look for an opportunity to short around 1.4725 if the failure was present or the candlestick was strong enough, but at this point I have to also start looking for buying opportunities, first at support around 1.4650. Until we get some more direction from the markets, this might be a good day to sit out and wait for some more news :).

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