Main Trend Turns Up for Euro

The EUR USD is trading sharply higher in New York as traders havebecome more tolerant for risk. The strong rally is taking place despitea bearish U.S. economic report and an FOMC meeting this afternoon.

The EUR USD is trading sharply higher in New York as traders have become more tolerant for risk. The strong rally is taking place despite a bearish U.S. economic report and an FOMC meeting this afternoon.
Earlier this morning the U.S. announced a steeper than expected GDP Report. Pre-report estimates were for a contraction in the economy of 4.7% but the actual number was 6.1%. Traders did not see this as weakness but as an opportunity for businesses to rebuild inventories after months of falling exports and inventories.

Technically, the daily swing turned up on a trade through 1.3300. A new main bottom was formed at 1.2964. Based on the range of 1.2456 to 1.3737, the rally crossed over to the bullside of the 50% price at 1.3097.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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