The USD is falling after the weaker than expected numbers. Be careful, though. This isn't about currency strength in the Euro so much as it is about the USD. I don't talk much about fundamental factors in this blog but the reality is that Eurozone has higher unemployment than the US. More importantly, unemployment is a lagging factor in an economy—it improves last. So you can't make firm conclusions about things just from this. Well, maybe you can draw one conclusion—the market is full of kneejerk reactions to news. I'm not suggesting the US economy is out of the woods by any means. But even if you believe the Euro, AUD, whatever, will continue up, use tight stops. Some significant resistance levels are being approached that I've blogged about earlier in the week.
See you Monday.
© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.
My purpose in writing this blog is to show you how one trader, me, makes trading decisions and survives while trading Forex. One of the biggest problems I had when I first started trading was trying to apply the “rules” to actual trades. Another was the psychology—limiting losses and letting profits run. If you study my blog, you’ll see how I deal with both those issues. So my writings are not trade recommendations but rather educational in purpose. You have to decide on your own approach to trading. Remember that trading is risky.
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