Why is EUR falling now?

Good afternoon,

an hour ago Inflation figures of Germany were released, higher inflation than expected, and EUR is falling....

I don't have an explanation for that, can anybody help me?

Thanks!

Look at the daily chart. Eu is going up.

When you want to trade news you dont look at the dailay chart - its a seconds action.....

Looking at the chart you posted, you went long at the high of the day when eu had already moved up over 130 pips during the London+NY session. It is unlikely for it to continue moving up more today so going long at that price and time was a risky trade. It is also unlikely for it to significantly move down and completely reverse the uptrend so short trades were also risky. On big trending days like this imo you should identify an area of support below market price, place a buy limit order there and just wait for the market to come to you or if you think it could continue moving up but has already moved past 70 percent of its ADR during the first 4 hours of london session imo you should stand aside, let the daily candle close and buy on next day if you are still bullish.

Thanks, perfect analyzis on daily basis

I just thought about a fast trade news correlated, planned to exit maybe half a minute or shorter after the release of German CPI data. In most of the cases it is irrelevant wether we are on a daily high or not, if the news is so "strong" to move the bars. From the economical point of view it is clear - hgher CPI than expected means higher inflation and results in fear of higher interest and the currency moving up

The mistake was, that i didnt trade the German DAX (attachement) instead of the EUR/USD, because DAX behaved in the expected way- higher nflation, higher interest fear, lower indices.

I also know, that normally there is little time to enter a trade in the specifed direction right after the news release, because in most of the cases its too late.
Today it would have worked - watching the news site, waiting for the CPI data released and take a position according to that. With DAX it would have worked.

Take it easy. Just got my TP1 hit.