Eur/USD

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Quote from FX_Cowboy:


Another thought is: maybe the exchange rate is like pressure on tectonic fault lines. The market can push price past equilibrium (based on economic realities), but pressure builds the further price moves away from that neutral zone...just like pressure building between tectonic plates. "Market sentiment" can only hold back the pressure for so long, however, and once whatever is pushing prices away from equilibrium gives way, the shift back to equilibrium is likely to be swift and violent (analogous to an earthquake).

Or maybe crazy market gyrations just cause traders to come up with crazy theories. :p
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Soros came up with that erm 19 years ago :D.
 
Quote from GlobalFinancier:

Soros came up with that erm 19 years ago :D.
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Hmm, I must have read that someplace, forgot about it, and then remembered it when the situation seemed to apply, thinking it was an original thought.

Either that, or "great minds think alike". :cool:
 
Being predictable is good. but I think the market underestimated Bernarke's comment. They took it to mean he's pausing now, and that's not what he said.
 
This quote made me shoot pepsi out of my nose in laughter:

"The FX market has moved as much as any on the suggestion from Bernanke that the Fed might take a breather at some stage..."

Haha....I love it. One word: DUH! Was it ever in doubt that the Fed may take a breather at some stage? Or did the market expect sucessive hikes until we got to 21% or so?
 
this is absolutly amazing. It's at 1.2540-50. The high from 9/5/05. Mabey this will be the ceiling. If it goes higher then it looks like 1.26 is the next resistance level.
 
Ivanovich...
The market only looked at the first half of the sentence, that there might be a pause in the tightening cycle, though that doesn't mean an end to the tightening cycle itself.
You're right, but you're seriously underestimating how stupid the market can get, and you're missing out on the profits by being a realist and not a doer.
 
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