Timing Your Exits with Fibonacci Retracements

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The main theme today was Euro weakness as there was more worrisome news regarding Ireland and it was revealed that the ECB bought a large amount of bonds last week. The EUR/USD slid from its highs near 1.38. The USD was a bit stronger as US stocks slid, despite some positive US fundamentals in the form of a decent pending home sales report and good levels of capital purchases by US companies in August. News Provided by CMS Forex www.cmsforex.com Forex Market Analyst Nick Nasad

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The Conference Board’s consumer confidence index fell sharply in today’s trading, pressuring the greenback against its major rivals. The EUR/USD tested the area just below 1.36, the USD/JPY fell to its lowest since intervention, the USD/CHF hit a record low.

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In the Fed’s statement policy makers showed concern about the low levels of inflation and left the door open for more quantitative easing, but didn’t agree to any steps right now. The knee-jerk reaction was to sell the Dollar in currency markets and we saw broad dollar-weakness as a result. News Provided by CMS Forex www.cmsforex.com Forex Market Analyst Nick Nasad

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Japan’s Ministry of Finance unilaterally intervened in the currency markets, selling the Yen. The results showed strong swings in the USD/JPY, EUR/JPY, GBP, and others. It was the first intervention in currency markets for Japanese authorities since 2004. US stocks, which opened weaker due to some weak manufacturing reports, rallied and turned positive, helping to boost risk appetite and buying of higher yielders like the Euro and Pound and growth linked currencies like the Australian and Canadian Dollars, at the US Dollar’s expense. News Provided by CMS Forex www.cmsforex.com Forex Market Analyst Nick Nasad

Japan’s Ministry of Finance unilaterally intervened in the currency markets, selling the Yen. The results showed strong swings in the USD/JPY, EUR/JPY, GBP, and others. It was the first intervention in currency markets for Japanese authorities since 2004. US stocks, which opened weaker due to some weak manufacturing reports, rallied and turned positive, helping to boost risk appetite and buying of higher yielders like the Euro and Pound and growth linked currencies like the Australian and Canadian Dollars, at the US Dollar’s expense. News Provided by CMS Forex www.cmsforex.com Forex Market Analyst Nick Nasad

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