Aww, geez! No signal from my HLHB mechanical system again this week. I guess that’s mostly because EURUSD has been ranging lately and there hasn’t been any one-directional move to trigger an EMA crossover.
Well, that’s just about right since the HLHB system is aimed at riding those trendy one-way moves. And at least my system kept me from getting wiped out during these choppy market times! I mean, EURUSD got jerked this way and that… Its movement is almost as unpredictable as the Ms. Universe results!
Compared to last week, this week has been pretty much dead. No real big moves, except for some big spikes in GBPUSD that were driven by reactions to some economic data. But even those moves were short lived, as the pair has been stuck in a descending channel the whole week! I think traders are just being really cautious right now, as there seems to be a lot of uncertainty in the markets right now.
If I had to pick a side though, I’d lean towards that of risk aversion. After last night’s news that unemployment claims and the crappy results of the Philly index report, I think this raises the perception that the economy is indeed struggling.
Then again, maybe we can just chalk up this tight movement to it being a late case of the “doldrums of summer”. What do you guys think? Just hit me up here… I’m really looking for some enlightenment in terms of the direction of EURUSD!