Sterling extends falls, dropping more than 1.5% against the dollar to a 31-year low of $1.3055, leaving open the potential for a break below the $1.30 level. Technical analysts see little below $1.30 in the way of chart support, with low volume and high volatility leaving the potential for more substantial falls. Commerzbank technical analysts cite a 1992-2016 support line at $1.2972/65. Below that, they say $1.2750 would be the "last defense for the $1.0463 1985 low", although Rabobank cites a 61.8% Fibonacci extension level at $1.2459. EUR/GBP hits a 2.5 year high of 0.8546, just shy of the October 2014 peak of 0.8547; GBP/JPY slides to a three-and-a-half year low of 132.66,
Forex and stock traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. All traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new stock traders will try and fight the trend.
No comments:
Post a Comment