Why the price did that??
sorry a small correction
as you can see the chart is the eurusd not the usdchf
but the same thing happened to that pair too
and also to usdjpy ,gbpjpy and so on
why that big retracement ???
I think just after U.S stock closing hour , Moody's downgraded Merrill Lynch .
that was a little bit unexpected and did gave EUR some boost for spike .
" : After Hour Earnings - Merrill & Google Fall] San Francisco, July 17. USD/JPY has dropped to 106.36 in the wake of the after-hours earnings reports. Merrill Lynch posted its fourth straight quarterly loss, down $4.6 bln,
and the stocks have fallen almost 5% after hours. Google stocks have dropped 10% in after hours earnings, but in good news, IBM bear expectations with EPS at $1.98 against expectations of $1.82. AMD has reported a Q2 net loss of $1.96, coming in on the negative side of the ledger and much deeper than forecasts for a 52 cent loss per share. Microsoft was mildly disappointing at 46 cents EPS compared to estimates of 47 cents. "
Sincerely,
ChampionFx
why all that move just to come back
It's forex ... If we always know why the price goes up and down, I/You and everybody will be able to figure out what will happen. So bad we can't ... but some clues here and there to catch some of these kind of moves in both way.
FerruFx
Hi Alaomega11,
I know the feeling and it can be very frustrating.
I wintessed that move in live and one asks himself whats the use of going down to go emmidiatly after back up again. Why couldn't the price just stay where it was in the first place.
We want to explain every move that happens but most of the time that is not possible because it is a war between bulls and bears.
But I was watching it also because I was in position on the BUND market.
And that move was on severall different markets at exactly the same time.
Look to your charts and you will see that oil made a big drop till 18.26gmt, the S&P went up till 18.26gmt and the german dax made also a top at 18.26gmt. The euro dropped till 18.28gmt. And if you look to your gold chart you will see a top that was made again at 18.26gmt. So 5! markets were conected to each other.
If oil drops then the dollar gets stronger (the oil is so high over the last months also due to a very weak dollar). The oil dropped significantly and reached a bottom around 18.26gmt
If oil drops then that is good for economy and for stock markets. That is also to be seen on the S&P. The S&P made a top around the same hour 18.26gmt as the oil reached the bottom and the euro reached that bottom at exact same time 18.26gmt.
So you need to look at it in a broather spectrum and different markets and also be awere that the institiutionals trade the whole market and not 1 single pair on the FX.
The moment 1 important market starts to shift others follow if it is a market that is closely watched and where institiutionals have big and important partitipations in and who need to cover and hedge the moment that this one market starts to move significantly.
Of course one can now ask why did the oil suddenly dropped so significantly?... Some taking profits...some scared of hights...because yesterday there was news at 14.35gmt about gas storage and that number showed that there is a lot more gas in stock then predicted or expected (on your chart of natural gas you can see that big drop at 14.35gmt). At that time oil was sitting on a high as you can see on your chart and started to decline.
Most lickely some speculators on oil started to get scared of hights and tought it would be better to take some profit on their oil futures after they heared that news on the gas wich then can cause an overall reaction to start to sell oil and all the rest is then history and you wintessed one of the chain reactions on the euro...
regards...iGoR
thanks guys for your explanations
ill keep these explanations as a bible
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i was wondering
why the price on usdchf
did a fall of around 100 pips
just to come back 80 pips as it is now
why all that move just to come back
i can t figure it out
as far as i know there were no news to effect the market like that