It is about 10:30am GMT, and we are witnessing the long awaited, amazing drop in the EUR/USD forex pair. Some forex analysts are reporting that apparently stops below 1.2730 went off. To those of you with short positions, congrats! To the euro bulls among you, sorry!
The hourly chart:
In the past few days the USD/JPY forex pair made an unsuccessful attempt to test the 15-year bottom at 84.72. It is high time we see upward movement. I wouldn’t go long until I see some good confirmation of that happening (a daily close of above 86.50 would be good for me). Until then, I am on the sidelines watching how Skinny Dollar is faring against Mighty Yen 
What else can I say? During the Asian trading session there has been a major push down in the EUR/USD forex pair. That still doesn’t make my trade #52 a profitable one but at least shows the right direction.
Anyway, as the Asian saying goes: An hourly chart is worth a thousand words.
EUR/USD reached a new high of 1.2922 – just 8 pips higher than yesterday’s high. Big deal.
What’s more interesting is that on the 4-hour chart I noticed the so-called bearish engulfing pattern, but 4-hour charts are time-zone dependent as you know so I am not sure if you’re seeing that and most importantly if the Big Shots in London and NY are seeing that (surely not!).
Anyway, EUR/USD is pretty much set for a beautiful heavy drop especially if today’s candle ends as a bearish one. (Disclosure: I’m holding a short position, you know. ) I’d love to see something like last Wednesday’s drop. Could the samurai help later tonight and give this forex pair a nice push down the slope?
Here’s the 4-hourly chart:
For the medium term, foreign exchange analysts at Crédit Agricole expect the U.S. dollar to “have a generally strong performance against major currencies, with the notable exception of commodity currencies.”
“We remain bullish on the USD against funding currencies (JPY, CHF) although, admittedly, our forecast revisions reveal a less bullish outlook than previously expected, especially against the stubbornly strong JPY,” the analysts said in a research report Wednesday.
