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Euro Rallies as ECB Holds Secret Talks

Discussion in 'Forex Daily News & Outlook' started by forextrends24, May 20, 2010.

  1. forextrends24

    forextrends24 New Member

    Mar 27, 2009
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    Today’s sample of Forex Analysis from ForexHound.com

    The EUR USD confirmed Wednesday’s closing price reversal bottom and surged to the upside on Thursday. Based on the chart pattern, traders should look for this move to continue with 1.2742 to 1.2884 the next upside target zone.

    All day long the market was flooded with negative chatter about the Euro which turned out to be the sign that too many people were short the currency. Often times a market will go down until the weakest short puts on a position and this may be the case with the Euro since the whole world has known about the debt problems in the Euro Zone since January.

    Traders are citing the cause for the reversal in the Euro as two key events. The first was already mentioned, the huge amount of shorts in the market. The second was a slightly positive reaction to moves by European Union government officials. Although no solid “intel” has come out of the not so secret meeting being held by the EU nations, traders reacted today as if “no news is good news” and covered their short positions.

    Read full article at ForexHound.com as well more Forex Trading articles including Forex Technical Analysis and Forex Education

    Disclaimer: Trading foreign exchange on the margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.

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