What made it fall like this?

Just wondering, there were no news about dollar or euro at that time. what could generate this move at that hour on the EUR/USD when both markets are closed?

I know that they come from a bank holliday and today Obama is going to sign the stimulus plan, but the news about the stimulus plan is not on the forex factory calendar at all... so I guess there was another reason for this move? Any thoughts?

USD
TIC Long-Term Purchases
http://www.forexfactory.com/images/m...etail_star.gif 34.8B
20.0B-25.6B

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You are forgetting this Imp. Usd fundamental, hope so this is it's impact
Otherwise something related with fundamental must be happened somewhere

"at that hour on the EUR/USD when both markets are closed?"
Huh? If you're getting data then your broker is probably taking orders.
Look at the 4H and the Daily. Draw a horizontal line around 1.2720.

I was trading then, so that is a probable reason!

Hey Flash: You were short?

Currency crash as Traders Take Move to Be an Intervention Warning : FOREXflash Steps In to Assist the Usd



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By John Schmid
Published: MONDAY, 02, 17, 2009
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FRANKFURT:

FOREXflash sold euros for the first time in a move that lifted the slumping common currency
but that the bank refused to label a market intervention.
"Whether you call it intervention or not, intervention was not the motive,"
said FOREXflash, president of the forex world.
The FOREXflash justified the purchase of €2.5 billion ($2.15 billion) in the open market as
a routine fine-tuning of its balance sheet. Flash also said it was common practice for him
to sell off interest income earned on foreign-exchange holdings as a way to rebalance his reserves.
But the operation keeps the central bank's powder dry if it elects later to carry out a large-scale intervention.
Foreign-exchange traders, who have kept the euro under persistent pressure since it came into being in
January 1999, said the gesture could presage a full-blown intervention.

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Significantly, the euro purchase was the first time the FOREXflash had spent any money to underpin
the beleaguered currency. Previously, it had given the euro only rhetorical support.
But mere words failed to brake a 20-month decline that has sapped confidence in Europe's
historic integration project and created fears among some Europeans about their savings and pensions.
"I was not disappointed by the market reaction" FOREXflash also said:
"It was not motivated to damage the euro."

But as the euro has slumped, a growing chorus of cynics has compared unified Europe to a
mismanaged publicly traded company and the euro's exchange rate to its share price.
They say the currency's flagging fortunes are an indicator of the failings of the whole integration effort.

What is not clear about what I said? I am learning, and need to know.

I didn't know what you meant about "both markets being closed". I can't tell exactly what time it was but it seems early - maybe around Frankfurt open or so, but the fx was trading from Sunday afternoon around 5:00 pm ET. But now we know from above news announcement what really happened. Nice to have some humor in these threads. ;==)))

he meant the US stock market and the EU stock markets were closed. not the FX market.

and btw, the currencies can still move even though their prospective markets are closed. for example, the Yens move the most during the US session, but barely move during the Asian session.

it could have been absolutely nothing other than some bank dropping a couple yards or closing out a position or something. or even a large institutional trader. depends at what time it was (guessing asia), but if there is low liquidity, that means that there is high volatility, which in this case means that the market can move quite a bit on a small sum of money.

Right. I wondered how can it fall 170 pips when EUR and USD markets are closed and there were no news. Thanks for the info.

The US market was closed on Monday which resulted in a lack or liquidity. This persisted until a little after the Asian open on Tuesday (which would have been Monday night, around 8 pm EST). There was no previous direction taken from the gap so no major trade desks got into the market. You will often see this when the U.S. or Europe banks are closed, nothing moves. If you were watching the majors (USD dominated pairs) around this time you would have seen them all spike close to 100 pips if not more in the span of 20-30 minutes. All it was was trade desks getting into their positions for the week.

It fell because it wanted to fall. If you spend your time trying to figure out "why" things happen you're going to have a hard time trading.

supply exceeded demand.

Haha, yep. There ya go.

There are many, many more reasons why a pair would fall (or rise) other than what's listed on the FF calendar

How should I proceed then? I try to see why things happen, to understand the market, maybe I'm doing it the wrong way.

The most important lesson you NEED to understand is that market
CAN NOT BE PREDICTED....all you can do is to develop a system that
have a EDGE....a smallest edge can make you profitable with good MM!!!
Learn your system and stick with it untill you know how to fully exploit it.

Regards

Ok, I don't pretend to open a new thread, so I post this here, since it's related.

Maybe I am missing something, but today all the EUR news were negative (all in red), however the EUR increased a lot, bullish movement of more than 250 pips in a couple hours... I am a little confused, if someone can give me a hint about this, I will really appreciate it.

BTW, I finished babypis school and learned a lot, but these things are still not clear to me. And I am sure many other rookies have the same question but hesitate to ask, so this can help others too.

Chart below:

http://img22.imageshack.us/img22/1797/eurbullishzb3.jpg

News doesnt move a market.....PEOPLE DO!!!
Market is a playground for banks & pro traders, they dont care
about the news, they move price where they want it to be!
That spike could be one big exchange...but who cares.....
If we could know why this happens, we will be millioners!

Take it easy

ForexFlash thanks for the input. That makes a little more sense, however, I don't understand what's the point of having a forex calendar then, with the "Actual", "Forecast" and "Previous" indicators updated in real time, if news indicators are not important for traders.

I understand that traders need to know the hours of news to avoid fakeouts, but why would they need a calendar with indicators, if it's supposed that banks and rich traders don't care about news? There must be a reason.

Greetings.