Who didn`t see this coming

An article by Gus    No Comments

Well I am not sure who did not see the United States credit rating down grade this past Friday afternoon after the closing bell. With all the issues in Congress dealing with the debt ceiling in the most awful way possible, a downgrade was all but a sure thing in my book. Not only that but with the massive sell off that happened in the U.S. markets and the Dow plummeting 500 points, we could see a storm coming. From the screen shot below we can see how unstable and just out of this world the EURUSD has been this past week. I am expecting some great plays this week with all the volatility pushing these markets forward.

While the news coming out of the U.S. and Europe is just bad right now, for us currency traders this just gives us momentum to makes some profits. Just have to read the markets correctly. I would be very careful trading the next few days given that with sharp spikes I would be careful having tight stops since they might get taken out quickly. Also keep an eye on the key levels because we wont be the only ones looking at them.

There is not much sense to the markets right now but we do know that everyone is in panic so remember that, a lot of the sell offs or rallys might not make sense but they will happen. Everything is mayhem right now so be careful out and get ready for some excitement.

This is why I love forex, just not a dull moment, good luck and relax this weekend. You will need some energy to get through the coming week.

Gus FX