Wednesday, October 3, 2012
In today's V.I.P. webinar, we briefly discuss the current price behavior in the EUR/USD pair and the fundamental news & events pushing market prices. We also place a few live trades using the Slumdog Forex trading system.
Tuesday, October 9, 2012
When trading in thin volume & low volatility environments, any type of rumor or false news can create such a huge market response or over-reaction, that it can prematurely push the price of asset classes into overbought or oversold territory. During today's price action for the EUR/USD pair, we saw this exact scenario play out earlier in the European trading session. About 30 minutes following the European Open, there was false information released that Spain's 10-yr bond yield breached above the 6.00% level. This news caused strong selling and flight to safety in the EUR/USD pair that pushed price towards the 1.2900 psychological level. It was later discovered that the group who released this false information had been looking at the wrong bond issuance for the Spanish 10-yr paper and later retracted their statement. However, the damage had already been done. The EUR/USD eventually pared some of it's losses on a deep retracement towards resistance at 1.2960, but continued its decline on the backdrop of statements released by ECB President Mario Draghi about further weakening in the Eurozone and also the World Bank's lower growth forecast for China with a revised 7.7% GDP projection for 2012.
In today's V.I.P. webinar, we discussed the current price behavior in the EUR/USD pair and we also attempted to place a few live trades using the Slumdog Forex trading system.