Thursday Feb 19, 2009 3:36 PM Est
Casey Stubbs–Winners Edge Trading
Today the Euro gained against the Dollar on a larger than expected unemployment announcement this morning. In the past that would have sent the Dollar higher because of risk aversion. Today, however the dollar lost strength even with the negative news report. I would attribute move today as a pull back from the Dollars earlier gains this week. You can see from the chart below that today’s gains hit the. 382 level on a Fibonacci Retracement on a 4hr chart.
So once again technical analysis rules over news. I do think long term the fundamental weakness of the Dollar will eventually show up the Dollar can’t keep raising in value when the economy is falling apart especially since we are printing so much more money and getting deeper into debt by the second. Eventually all of this will catch up to the Dollar and the roof will fall in. In the meantime just keep reading the technical charts and ride the Dollar to more gains.
The price bounced off of the .382 level and now is headed back down. I would look for the pair to challenge new lows soon.
Winner’s Edge Trading, as seen on: