5th October, 2008.
As expected, last week witnessed the USD strength overall influencing major of its pairs. But, was this the USD strength in actuality or the USD rally once again ? And, the answer is simply just "No". This situation could be assumed to be an illusion. In real, it was the USD crisis rather than the strength. Whatever up swing it showed was obliged to the incidental current resultant big demand of US dollar; this refers to the financial happenings within the US economy and global economic sphere, requiring pages to discuss. Thus, to say that this is Temporal may be the correct.
For EURUSD, the anticipation came true and it crossed the 12-month low, filling pockets of those who were on short for this pair. But, again, was this move just due to the temporary USD strength ? No, simply because there are individual problems also associated with euro itself belonging to the relevant economy.
The upcoming week is labeled with the USD weakening - reversal sign or consolidation - by both fundamental and technical analysis. For EURUSD, it will remain highly volatile - reversal or consolidation; how much and of which pattern remain uncertain. If you want to remain risk free, then, you should be away from this pair. Near certain would likely be the JPY correlated pairs which seem to be fruitful - EURJPY, AUDJPY, USDJPY, GBPJPY. Traders will choose these pairs more confidently; but one must see first the market movement.
Though, to opt out of trading with USD pair should be the wise step forward. Lastly, my last week's advice of "Beware of Dogs" is even more applicable for this coming week than it was for the last week.
For EURUSD, the anticipation came true and it crossed the 12-month low, filling pockets of those who were on short for this pair. But, again, was this move just due to the temporary USD strength ? No, simply because there are individual problems also associated with euro itself belonging to the relevant economy.
The upcoming week is labeled with the USD weakening - reversal sign or consolidation - by both fundamental and technical analysis. For EURUSD, it will remain highly volatile - reversal or consolidation; how much and of which pattern remain uncertain. If you want to remain risk free, then, you should be away from this pair. Near certain would likely be the JPY correlated pairs which seem to be fruitful - EURJPY, AUDJPY, USDJPY, GBPJPY. Traders will choose these pairs more confidently; but one must see first the market movement.
Though, to opt out of trading with USD pair should be the wise step forward. Lastly, my last week's advice of "Beware of Dogs" is even more applicable for this coming week than it was for the last week.
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