Wow, EURUSD just keeps poppin’ higher! After getting stopped out last week at 1.3290, the pair is now threatening to test the 1.3700 handle! Unfortunately, with no major pull back, this leaves me signal-less! In fact, the bullish run is so strong that stochastic has barely even gone below the 50 mark the past two weeks!
I don’t feel too bummed out about it though. After all, I did grab 600 pips last week! I guess this is just how mechanical systems work. You develop the system and follow the rules NO MATTER WHAT. It’s kinda like guys having to pay for everything on the first date (hint hint) – it’s just a law of nature!
For the third week in a row, the euro managed one-up the dollar and rally to new 6-month highs. The rally also comes despite Moody’s downgrade of Spain’s sovereign credit rating (a little behind the curve, IMO). You’d think the euro’s strength is coming from risk appetite, but it isn’t! The dollar is really just so weak that it is falling against BOTH the euro and the yen.
But hey, I’m just a little newbie retail trader who THINKS she knows something about how economies and exchange rates work. For all I know, this euro rally is simply a massive retracement of the overall long-term trend! Besides, I’m not sure if the euro still has steam to rally, especially with the NFP report coming out next week. Uncertainty could lead to risk aversion, and therefore, dollar strength.
Well, I guess that’s it for me this week. It’s just too bad that I wasn’t able to take any trades at all this week but all is good. I’m so excited to watch Wall Street: Money Never Sleeps tonight. A movie about trading? Nothing could get better than that!
Happy weekend everyone!