By Casey Stubbs — Join Casey in the $2500 Currency Trading Challenge
The Eur/Usd had a huge drop this week!!!! Yes it dropped 41 pips, after all the talk, after all the downgrades, after all the drama, the Eur/Usd currency pair fell a whopping 41 pips. It closed last week at 1.2721 and closed this week at 1.2682. The pair actually opened at 1.2687 and closed at 1.2682 so actually it only was down 5 pips. Now I believe that market sentiment is what moves the market and that is why the Euro is down so far right now. One thing to remember is that the media and the market participants are very fickle, which means they can love you one minute and hate you the next.
So lets try to look at what events could cause a shift in current market sentiment:
- They will get tired of reporting only about the Euro, and eventually people will see that the Dollar is not in any better shape than the Euro as a matter of fact the U.S. is just a bad off or perhaps worse than the Euro.
- The U.S. Government is in 14 trillion in debt which is greater than any other country in the world.
- On top of our tremendous debt that we cannot control is the fact that the fed wants to print more money QE3
- U.S. Unemployment is causing less taxes to be collected add that the fact that the debt is growing means that the debt will keep spiraling out of control.
Yes the Euro Stinks, but have people really forgotten about the dire condition of the Dollar? You know the saying the bigger they are the harder they fall. I think we will see a fall soon. Watch this video that truly describes the ignorance of most Americans and mainly the ignorance of the government. Last week I called a Euro bounce and I am sticking with me analysis until It goes against me 🙂
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