Hi fellow-members,

Could please someone among you explain to me what caused the EURO to go up so fast on monday 26th?

I have read the news which came out today and somehow I do not understand. For example: Existing Homesales increased by 6.5% today. According to a site called forex Factory, the result which was higner than the forecast should have been good for the Currency ( in this case USD) which would have meant the EURO Should have gone down.

Now what did we see ( still going on as I write this), The EURO is going up for no one knows where it will stop.

What caused this bulish reversal today? Please someone explain this to me if possible.

All the best,

Jan

I believe it was a bullish retracement. At the moment risk aversion rules the roost so hence the EURO is taking a beating as traders shed themselves of riskier investments and currencies and hence are forced to buy dollars to cover - driving the price of the dollar up. Also it could be simply that a retracement of the continuing downtrend was called for.

I still think the downtrend is not yet over. For instance I'm waiting for the euro to break or bounce off major support 1.2329 before jumping to any conclusion.

Pay close attention to this coming Friday's NFP report!!

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