Good day forex traders.
Welcome to mid week! I hope you are green for now. I took a small loss from that unexpected dip. But more importantly i cannot let emotions rule my trading. That is a recipe for excessive risky trading. Remain calm i will 🙂
The Spanish regional downgrade of ratings drew the risk appetites out of the markets. Many investors were worried of a spread in the fallout.
Looking at the EUR/USD 4 hourly chart above, we note a bearish trend in action. This has brought the currency pair below the 1.3 line and thus opened out 1.28 as an extended bearish target. The immediate support of 1.2950 is still in play though as the currency pair bounced along it.
Fundamental news are not doing the bullish peeps any favor for now. The German business confidence fell to the lowest in more than 2.5 years for October and this was unexpected. Euro-area services and manufacturing output shrunk more than expected and this brought more apprehension.
ECB President Draghi is speaking in Germany now and the US FOMC statement is due later. Caution is advised.