|mmccormac ||Mar 24, 2010 11:02pm | Post# 215987 |
Clouds really to rally 110 pips from here would mean putting a lot of real money on the Euro, which I just cant see. Even if it were all triggers I would think there are pleanty of sell orders above us to absorb.
Lots of traders don't hold positions for months on end... This means they have to "take profit". When they take profit it acts as a "buy order" then pushing price up. As price goes up it hits sellers stop losses, and as those get hit they generate more "buy orders".
This is one of the many reasons retrace moves happen. Does this mean it will retrace? NO.
You may be right it may just swing down and keep going but 100-150 pips really is nothing big for a retrace so I also expect that 3430-40 level to get tested again.
Awesome week so far, hope you made $$$.
Edit: It looks possible for a shot down to 3250 area before the retrace. Time will tell.
Edit2: I posted that number above before reading some of the comments in here... It seems several people are thinking around 3260, this very well may be the price that brings in profit taking as we get closer to the end of the week.