Thursday, January 21, 2010

Three days of fun and games

Last three days the major currencies had a BIG ride. Euro lost heavily against the USD while CHF gained similar amount. Euro has fallen below the last daily bottom of Dec.22, 2009, while CHF has not been able to break above the high of that day.

GBP gave a valiant try to hold on but finally gave up and had a major slide too. It still has steam to run may be to 1.6050. Let us see if it meets that target. JPY is trying to assert its daily uptrend and almost hit 92.00 against the USD. Question is will it exhaust itself here and revert or just undergo a correction to assert the uptrend. Time will tell. But it certainly is the wrong time to buy USD/JPY at tis instance.

Indian stock barometer nifty also finally gave up after exhaustion of many days and had a large correction today.

There have  been some major moves over last three days, so it may be time to stand aside as these moves can get exhausted for some time to come.