Euro: Continuation or Consolidation?
August 11, 2010
The euro has sold off aggressively over the past 24 hours, breaking below at least 3 big figures in the process. After such a strong move, many currency traders wonder if there will be consolidation or continuation. Today’s sell-off in the EUR/USD was the strongest since January 5, 2009 and taking a look back at how the EUR/USD behaved at that time, we can see in the following chart that there was a 100 pip continuation the following day before consolidation.
Do you think history will be repeated? I do.
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Posted in 2010 eurusd forecast, eur/usd, euro, forex blog
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August 11th, 2010 at 6:50 pm
well, why would you relate current events with past when we know they are totally two diff events and tow different economic times…i read your article that euro should move up most probably after the fed announcement as had happened all the time in past butt the rally failed !!! i would say lets not base our guess work on what happened in jan or oct of 99 or 84, and see what happens now and trade if we can….no offence we are traders not predictors
August 11th, 2010 at 9:33 pm
[...] original post here: Euro: Continuation or Consolidation? | Kathy Lien By admin | category: consolidation | tags: best-one, circumstances, combine-various, [...]
August 11th, 2010 at 9:36 pm
History also says Aug 12 is usually a up day, so hard to say…
For now eurusd is going up, which makes me cringe as this look signs of pullback on the downside.
Walter.
August 12th, 2010 at 3:23 am
I agree with Kathy the continuation is more possible. And as traders we do wish the price pullback to a good level to look for a nice sell for another 100pips
Cheers,
Eric Lye
August 12th, 2010 at 3:23 am
Hmmm… I really don’t think that everything will repeat just the same way. To my mind the consolidation will come even after a couple of weeks, when everybody will abandon all hopes about EUR rising up.
August 12th, 2010 at 3:25 am
[...] Euro: Continuation or Consolidation? | Kathy Lien [...]
August 12th, 2010 at 3:28 am
There’s one more thing called “Retracement”. Most likely after such a strong move down, price will retrace.
August 12th, 2010 at 8:39 am
good job!!
thank you kathy
August 12th, 2010 at 4:35 pm
GFSignals Team,
You dont have to take it literally word for word, I think the writer meant in terms of probability (maybe seasonal).
Take a look at this link you will get some idea http://www.dailyfinance.com/quotes/apple-inc/aapl/nas/average-monthly-returns
If you stay long enough in this business you will realize there is nothing new in this business. I am a disciple of Jesse Livermore club:-)
August 12th, 2010 at 4:36 pm
Sorry forgot to put my name at the end for the above post.
Walter.