Wednesday, July 27, 2011
Market trend analysis for 27th of July 2011
Hi, everyone. Let us do market trend analysis for today. Nobody believed that the second wave of crisis was possible one year ago. Like always, there were some people that were shouting about it, but their voices were never listened to and the vast majority of people never really heard the message that those voices were delivering. Now, every day is uncertain for a bankruptcy of United States is more than a possibility. It is just a matter of time.
Although most currencies fell against US dollar today, I do not think this is a long term phenomena. In my opinion dollar will collapse soon. EUR/USD is at support now and will probably continue its’ ascend sooner rather than later. Much depends on the decision that the US government will make regarding debt ceiling. However, a ‘bomb of debt’ has been ticking for too long. Something had to be done long time ago. Now it is too late. I think the best candidate for shorting is the greenback. Therefore, if you are interested I would recommend watching eur/usd, gbp/usd, aud/usd price action around European sessions and try to see whether there are any reversal around support area. If there are you would have an opportunity to short the greenback and have a day trade.
See you tomorrow.
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