Remember - Market Means Surprise

[Dr.S.Sivaraman]

Forex market started this week with more and more surprises -ie quick gains and newer higher levels in EURO and GBP and lower levels in USD/CAD,USD/CHF till 07 Nov 2007.It has given the feel to every trader that no more shorting of the other majors and can only take buy positions in them during dips.Then today -08 Nov 2007 made the initial reverse surprise of dips in EURO and GBP from the psychological levels of 1.47 in EURO and 2.10 in GBP.Keep in mind that market can give surprise in any direction.It is more of rise and fall of other majors rather than simply attribiting to USD weakness.Because the US economic data are recently not that bad for USD to weaken again and again.Also the data released from other major currency countries are not that good for the currencies to appreicate endlessly.Since the traders developed the fear of shorting other majors and stopped shorting them,the time has come for the market to rerverse.There is a saying in the market when the strongest bull give up and take short positions in USD then the market rerverses in a big way.Past market performances reveal that the rise of the market takes long duration of weeks and months but the corrections happen at a faster phase of days and weeks.
Let us wait for the reversal of the market - the next surprise.
Regards
Dr.S.Sivaraman