EUR/USD is looking to close another week in the green and the 6th out of seven positive weekly closes. With 8 more trading days until September it’s also looking for it’s 3rd straight positive monthly close.
So why do we find a urge to jump in front of these moves and to trade a reversal when the evidence suggests they may continue?
It’s very hard to change a train of thought. It’s hard to look at the fundamentals and agree with the price moves. There’s not many people on the ground or on this site saying that Europe is in full recovery mode. Understanding is the holy grail and I constantly say that when the intraday picture becomes unclear take a step back and collect your thoughts. Simplify your views as much as possible.
- Is Europe still in a mess?
- If you think it is will it implode on that mess?
- Is Europe looking to bottom out and recover?
- Is the US economy struggling to respond to stimulus?
- Are other big global economic areas showing signs of trouble?
Answer those questions honestly and then tell me why the euro should go down.
