It’s 18:09 (GMT). I just sold some EUR/USD. A key level at around 1.3770 has just been broken. (Probably prompted by the Dow diving below 11,000.)
SL as per my Trading Plan
Target: not set; but expecting the pair to go to below 1.30
The Euro is trading above 1.2700 urrently (06:13 am GMT). The forex market got thinner after the release of two worse than expected US economic reports yesterday. Forex speculators may be looking forward to today’s keynote speech by Fed Chairman Ben Shalom Bernanke at the banker’s conference in Jackson Hole, Wyoming.
Not much so far (11:24am GMT). The Flash Manufacturing PMI data, announced earlier, was received with a shrug from forex traders. The market has been drilling between 1.2728 and 1.2682 ever since then. Quite an uneventful European morning session. Perhaps the cowboys will start the rodeo? 
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:
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:
I guess I was in a little hurry to open my short EUR/USD 2 days ago not waiting for the small correction that followed the big drop of last week. I think we’ve seen enough of a correction and I am expecting the pair to resume its downtrend towards 1.2200. I am considering putting a buy order at 1.2195 or thereabouts, but it’s a bit too early for that I guess.
Here’s the daily chart for the EUR/USD forex pair (as of 07:05am GMT):
