Disliked17:49 EUR/USD: Meandering Despite Fed Comments New York, August 15th. Despite the fact that Chicago Fed president Evans sees less risk of a "severe downturn"; and inflation expectations are "extremely elevated", EUR/USD is meandering along in a 1.4660/80 sideways chop. Granted the direction has a downside bias, and a fresh session low has been recorded, but extreme oversold conditions on daily studies are deterring follow through. RSI is at 16.4, the oversold 5 and 20-day M/A lower Bollinger band oversold indicators are at 1.4650 and 60. It's been a big week and no one wants to get caught short at the bottom. Spot last 1.4663. [email protected]Ignored
Take a look at a daily chart: it's a parabolic, unhealthy upmove...when any market makes a big parabolic move, when it turns it tends to retrace most of it if not all of it.
Same with oil, same with gold. Same with ANYTHING.
If you've been around long enough, you should know that fighting a trend is the biggest mistake you can make as a trader.
Think of all the dollar bulls who've been shorting this pair until a month ago???
God knows how many accounts were blown up just because the idiotic trader wouldn't buy euros and go with the flow.
Now the US dollar is pushing down and making new lows every day, and this pair is oversold...LMAO...
It's just trending down, forget about it being oversold.
It will retrace at some point, maybe on Monday or maybe not until it touches 1.30 or 1.15...WHO KNOWS ANYWAYS???
Always be open to anything. Trading is not about making predictions, but about reacting QUICKLY to what the market is telling us.
I personally consider last week as one of the most important weeks in the history of this pair. This week was just a weaker continuation of what happened last week, validating last week's downturn.
I don't really care about what caused this fall, be it central bankers or institutionals or hedge funds.
The charts never lie. All you need to know is in there.