EUR/USD A mere retracement in the bigger move?
It is the weekends again and i appreciate the spare time i have to reevaluate my charts and gain insights.
The EUR/USD took a dive of around 200 pips after Non Farm Payroll.
As always, trading in NFP is risky and good money management must be there to mitigate it.
I have wrote articles on both. You can find them using the search box.
Upon seeing the drop, many folks herald a new age of bearish momentum.
In my opinion, i see it as merely a retracement in a bigger move.
Of course i am not basing this on my “gut feel” or “instincts”.
Taking a bigger outlook since June 09, we have been in a big up channel and even with Friday’s big drop, we have not tested the lower trendline.
If you have been reading my views, you will know that i love to use S & P 500 as a clue.
S&P 500 rallied on Friday and have been since June 09.
If the subtle correlation of the S&P500 and EUR/USD is still in play and no adverse news comes along, we can watch out for the rally to bring the EUR/USD along.
However, any upside movement will be contested by the even number prices.
- 1.4200
- 1.4400
One area of concern for me however is that the price failed to hit 1.4200 by Friday close.
I will be watching Monday open carefully.
Any downside movement should potentially test 1.4100.
Trade safe and enjoy your weekend.
