Happy Thursday to everyone!
We’re coming down yet again to the end of another trading week and I must say that it’s been an eventful one. I think it’s a good sign. Even the least heavily traded of the USD pairs, NZD/USD, made great strides to the upside. It has gained over 400 pips in the last 4 days. Let’s not get sidetracked though and get back to talking about EUR/USD.
I have been keeping a closer eye on this pair for over a week and it has not disappointed. Since writing my first FX Watch post on EUR/USD(Wednesday last week), it has gained over 8 pts(1 pt =100 pips) ! Can you imagine that? It’s really a dream come true. So, to answer my question from yesterday: Is EUR/USD setting itself into a longterm trend to the upside? From my analysis, I believe that the answer is YES. It may be an uphill battle, there will be pullbacks and inactivity at times but the tide has turned.
Look at today’s chart below:
and let’s compare it to last Wednesday chart:
What a difference a week makes, right? 😀
This month, the pair has made some dramatic moves so be prepared for some minor pullbacks. With the global economic crisis seemingly getting worse, food and gas prices and unemployment rising, we are all hoping for some relief soon. The recent stock market rally and the Fed Reserve Chairman saying that the recession may end this year, this has helped provide some optimism for us. We should never put too much faith in such predictions but it would be very good if it all came to pass, wouldn’t it? In the meantime, hold unto the tangibles and make it work for you. Seeing is believing.
p.s. Don’t forget to look out for my updates on Twitter(check sidebar of this page) and feel free to leave comments/email me with any thoughts or questions. Looking forward to hearing more from you all! 🙂