This correction is slightly stronger than I expected for the moment.
We have surpassed the 1st strong resistance lying @1.3920-30 very easily
and went up to 1.3991 for the time being.
Two days ago we did a high @ 1.4005 and went straight down to 1.3700.
What has really changed since? Rumors by a US think tank of 500 bio QE extension by the US in the next 3-6 months..
So what? This is what was priced yesterday as well since the "experts" were already talking about
100 bio liquidity/month. If I am correct we wont know the real number before next Fed meeting
on Nov 3rd so we can expect lot of volatility until then with many rumors about that bloody QE 2.0
again..
Chinese authorities have hiked their rates yeterday to cool off some domestic and international pressures
and today it seems like all markets have forgotten about it..how silly?
You can soon expect the commentators to talk about it again when and if EURUSD goes back down to 1.3800 and below.
The bottomline is that I think we mightsee a runup to 1.4000-30 or so but I dont think it s gonna change the curreent trend. The only thing that would make me change of opinion is if something concrete came out, not just rumors..
Since I have to apply strict risk management rules I will stick with my levels and be flexible in case we breakup. It it feels like a false break, I will try again the downside.
We have Fed Beige Book in a couple hours which might trigger some more stoplosses, but hopefully my levels will be correct and we will see EURUSD lower later.
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