Last couple days were a blood bath on EUR/USD pair and more or less all currency pairs with Euro and Dollar. DAX and other indexes dived hard today along with Aussie Dollar, Pound and both Crude and Brent Oil. Gold goes up slightly as well as Yen and Swiss Frank did. It looks like we have classical Risk Off sentiment with VIX gaining 2.23 pt. in early US trading.
Check out XM broker and their trading terms – Convenient deposits, bonuses and protection against negative balance!
After Mario Draghi speech last Thursday EUR/USD seen the strongest move in the last 6 years. Many investors betting on further move south got trapped on the wrong side of the market. What did they do? Big investors do not have stop-loss orders on their charts. They need to manage losing trades accumulated to often large bets. They could try to push the price lower to fade the upward move made in panic triggered by ECB. Eventually, they could have waited until price will slide on its own. However, two days have passed and on the third day price is going up again. What else they can do? In my opinion, they can unwind shorts and accept that loss.
Breaking 1.0900 should be followed by test of major resistance 1.1030. Another possible target in short term would be 1.1100/1.1130.
