Ok, so I made some rather large mistakes on the EURUSD cross while FX(forex/currency)-trading today. A small technical chart of the EURUSD cross is shown below. I ate up the profit made the past couple of days and am now down as compared to a week ago.. shit happens, time to go back to the strategical drawing board and get back on the horse tomorrow.
(click for larger image)
So.. Some explainations: The EUR appreciation of 109.5 pips (0.75%) seen was a result of a chinese official stating that China should diversify its liquidity reserves into stronger currencies as the USD has weakened steadily. This obviously affected the currency markets on several levels, and immediately made the EUR jump. As we can see over the next couple of hours traders have difficulty deciding how to react to this, and at the time of writing most are starting to look back at the levels before the comments were made.
