The risk aversion on Dollar has moved the Eur/Usd back and trading in action the Dow dropped 1% today due to fear. The pair moved to 1.4700 which is over 300 pips from the high reached earlier this month.
Right now the drop has stopped at .618 Fibonacci retracement level which has acted as temporary support. The 1.4700 level has also acted as support. If we see this level broken the direction could continue to move down.
You can see how the pair has stopped at the support line on the 4 Hr chart.
4Hr Chart * note click on the chart to learn a trading system.
The direction of this pair depends on the U.S. Economy and the current recovery. Watch the important news tomorrow especially the Unemployment claims and the GDP information. To get current with all of the news read Forex Crunch.
Trading this pair tomorrow be careful because a great deal of price action will be in effect because of the large number of news impacting the pair. Watch the 1.4700 level to look for short entries if the news takes the pair down.
Winner’s Edge Trading, as seen on: