eToro – Forex Trading Forum

[BlueinGreen]

morning traders,

Yesterday's German IFO Business Climate report turned out to be much worse than expected ( only 94.8 while forecast was 97.1), as a result, at the time of the report's release, the EURUSD sank into a new low at 1.4570. from around 1.470

I think that this was just another good example of how making a profit in the forex market can be easy – and simple at times ( not always of course ).
traders who can simply add one + one together, and are there at the right time to pull the trigger make a lot of money from days like yesterday.

what made selling the EURUSD such an easy trade yesterday ?
First we had a market which was already very bullish for the dollar in its mid term sentiment,
we notice EURUSD trying to correct its last down move – but keeps encountering heavy selling the last two weeks.
Second – we know that the main driver behind the move is worries over the European economy.
and last – we have an important economic report ( the IFO) which attracts the attention of traders – and finally turn out worse than expected for Europe's biggest economy .

these factors made the recipe for a quick move down to 1.4570 .

Although the Dollar started to correct it self at the U.S session after oil price went up from around $114 to $117 per barrel. ( any move above $ 115 is watched closely by traders)

Today's main event is Durable goods Orders,
a bad figure might put some further pressure on the FED to delay rising rates in the near future – thus might encourage dollar selling on the short term.

1:30pm USD Core Durable Goods Orders m/m Forecast -0.5% Previous 2.0%

Happy Trading