Did “big money” have anything to do with the drop in the euro FX?
You bet it did. A must read for forex traders.
In last week’s shortened trading, the December 2011 euro FX futures contract opened at 1.41520 and closed the week at 1.36540. Nice move if you were short. Last week’s comments by Trichet regarding the poor economic outlook for Europe and Germany’s preparation for propping up German banks if, or more like when, Greece defaults no doubt helped bring down the euro.
Looking at the technicals on the daily chart below you will see how the four-and nine-day emas crossed the 18-day ema on Sept. 1 and 2. DI- crossed up over DI+ on Aug. 31 and ADX began its rise on Sept. 1 and 2. MACD crossed down below the signal line Sept. 1 and Stochastics started correcting from overbought territory on Aug. 31. All technicals signs indicate the euro will continue dropping.Proceed to Page 2 for the latest COT Data...