Despite a daily downtrend, last week EURUSD closed with a 170Pips Spike.
I’m just starting to understand some basic on fundamental analysis, but it is still not clear to me if that spike si some sort of “emotional reaction” to the negative news on U$ and we have to expect a return to downtrend or if there are some FUNDAMENTAL-REASONS to consider EuroZone crisis ended.
Thank you for any help provided in understanding a little bit more the scenario.
Best
Francesco
Unless I can track down a news release that caused it I normally think of those late market spikes as institutional traders to want cover significant positions prior to market close. Especially over the last few months the euro debt crisis updates have come during the weekend causing some stressful weekend gaps.
Throw in that liquidity is typically lower right prior to market close those covering trades would have a magnified effect not otherwise experienced.
there is going to be slight bullish next week. you are witnessing extremely bearish from last week. I think eurusd next will go up.