Hello All,

Anyone know what happened to the market today? How come almost all currencies lost value against the USD????

Did someone say something?

Berts

Here is one theory that I heard of today. It is the best one that I can think of at the moment. |
As we know every one was very short the USD and very long most other currency.

The market gapped upon opening on Sunday. We all know the gap usually gets filled, so the world started trading the gap. There were so many people/banks ect... taking advantage of the gap, momentum built up and the gap was overshot. Taking out S/L's as it dropped. The S/L's getting hit compounded the momentum created by the gap trading, big banks decided to launch an attack on S/L's, and now the price has cleared the board of all those longs that were in place, and gave way for all new long entry points.
Also....the price was too high for big buyers to jump in and push euro$ to 1.4500. Now the price has fallen 200-300 pips, there is a good point to place longs and get a running start at resistance levels.

The 95% will be sitting around scratching there heads, and some will be taking shorts because I heard so many say as long as price remains above 1.4200 there bullish. So the drop below 1.4200 will turn a lot of peoples view the wrong way.

This was made by xxDavidxSxx at ForexFactory.com

Hey Mike,

Thank you very much! That makes sense

So, you are still thinking the EUR could hit new highs?