Happy Halloween!
Dear Friends/Fellow Traders,
Happy Halloween! I hope you all have an awesome night, just remember NOT to drink and drive, and play with fireworks responsibly (Always SAFETY FIRST).
Now back to the market.
As expected (at least I had expected it), the Consumer Confidence Index and Chicago PMI numbers disappointed, resulting in even more sell-off of the Dollar. The GBP/USD rocketed up to 1.9091, just 9 pips shy of 1.91, and the EUR/USD spiked up to 1.2782, breaking the 1.2765 61.8% Fib (a relatively strong resistance) in the process. I could go on, but basically the Dollar lost against every major in the morning following the release of the two numbers. This does not bode well for the Dollar, as the last bastions of the Dollar Bulls are succumbing to the overwhelming forces of the market and forced to cut losses and establish Dollar Short positions. Of course there will be some very long term Dollar Bulls still hoping for some sort of rebound or a continuous string of positive economic data releases to alleviate the downward pressure on the Dollar, but the chances of that are comparable to that of getting 10 blackjacks in a row at the casino (Chances are there, but slim).
The only major risk for the Dollar Bears (including me) will be the Non-Farm Payrolls and Unemployment Numbers due at 8:30ET on Friday. An upside surprise could see the Dollar regaining some lost ground, while weak numbers would send the Dollar plummeting ever further into the abyss. With that said, I would keep stops relatively tight, or at least move your stops to lock in profits if your positions are already profitable to prevent getting wiped out on a surprise. The Non-Farm Payrolls number is the biggest market-mover that can potentially wipe out a lot of stops and small accounts if not managed carefully. Currency pairs involving the USD can move as much as 100 pips or even more in the first 5 minutes following the release, so prepare for a bumpy ride as the market participants go out of control with their emotions and greed.
My chips are in with the Dollar Bears, as I firmly believe that the NFP numbers will disappoint, but hey I'm never 100% right and there could be surprises, so prepare for that!
Trick or Treat? I think I raked in my share of profits when the US numbers disappointed this morning, so what a Treat!
Stay Tuned for more!
To successful trading,
Dickens
Happy Halloween! I hope you all have an awesome night, just remember NOT to drink and drive, and play with fireworks responsibly (Always SAFETY FIRST).
Now back to the market.
As expected (at least I had expected it), the Consumer Confidence Index and Chicago PMI numbers disappointed, resulting in even more sell-off of the Dollar. The GBP/USD rocketed up to 1.9091, just 9 pips shy of 1.91, and the EUR/USD spiked up to 1.2782, breaking the 1.2765 61.8% Fib (a relatively strong resistance) in the process. I could go on, but basically the Dollar lost against every major in the morning following the release of the two numbers. This does not bode well for the Dollar, as the last bastions of the Dollar Bulls are succumbing to the overwhelming forces of the market and forced to cut losses and establish Dollar Short positions. Of course there will be some very long term Dollar Bulls still hoping for some sort of rebound or a continuous string of positive economic data releases to alleviate the downward pressure on the Dollar, but the chances of that are comparable to that of getting 10 blackjacks in a row at the casino (Chances are there, but slim).
The only major risk for the Dollar Bears (including me) will be the Non-Farm Payrolls and Unemployment Numbers due at 8:30ET on Friday. An upside surprise could see the Dollar regaining some lost ground, while weak numbers would send the Dollar plummeting ever further into the abyss. With that said, I would keep stops relatively tight, or at least move your stops to lock in profits if your positions are already profitable to prevent getting wiped out on a surprise. The Non-Farm Payrolls number is the biggest market-mover that can potentially wipe out a lot of stops and small accounts if not managed carefully. Currency pairs involving the USD can move as much as 100 pips or even more in the first 5 minutes following the release, so prepare for a bumpy ride as the market participants go out of control with their emotions and greed.
My chips are in with the Dollar Bears, as I firmly believe that the NFP numbers will disappoint, but hey I'm never 100% right and there could be surprises, so prepare for that!
Trick or Treat? I think I raked in my share of profits when the US numbers disappointed this morning, so what a Treat!
Stay Tuned for more!
To successful trading,
Dickens
posted by ForexDragon at 6:14 PM
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