EUR/USD, when everyone starts talking…

TurnAround2

…about some abnormal levels, maybe it’s time to think about reversal!? It’s not a rule, but I experienced this several times in the market. On my oppinion, everything bad is priced in the euro, but there is nothing bad priced in the US dollar in the past 10 months. Sure, there was a lot of reasons for weakining the euro, 1st rate cut, 2nd rate cut, QE, Greece bailout, but who would expect this? 10 falling months, from wich 9 in a row, start at 1.4000 finished to 1.1100! After all, it looks like that all market is trading against the euro and like there is no end. But when things become to obvious and everyone start to talk about it, write about it, predict it… I have to wonder about the further development and be suspicious. Sure, we have technical levels to follow and not to trade based on our thoughts, but… Just keep this in mind if you are a long term in. We will see!?

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