The EUR/USD forex pair ended the week at 1.2733 with a ‘hesitant’ daily candlestick. Friday’s European trading session was extremely boring, but then Mr. Bernanke opened his mouth at 14:00 GMT and rattled the markets, first down to 1.2676 then up to 1.2778, to close at 1.2733. What this means is that either what he said amounts to ‘not much’ at the end of the day, or forex speculators just ‘did their Friday morning roller coaster thing’. Whatever it is, I am holding my EUR/USD short as I think we are right now at the top of the second correction of the downtrend, which started at 1.3332.
Here’s the daily chart:
