Wednesday, September 23, 2009
EUR/USD Daily Close Beneath 1.4730 Will Signal Top; September 23, 2009
The Fed announcement spiked the EUR/USD to the 1.4840 area and again it was rejected at that level and began to selloff. If the pair can trade below where it was before the Fed news came out (around 1.4770), and more importantly close on a daily basis beneath the daily low of 1.4730 level, then it will be the first signal that a top may be in place. However if the pair continues higher through 1.4850 then it will probably target the 1.5000 area from there.
Again, a top in the EUR/USD will probably signal that a top in the stock market is occuring. I'm looking for the EUR/USD to close today beneath 1.4730 on a daily basis to signal that top may be in.