Downside risks for EUR/USD could see the euro drop below the $1.0980-$1.0990
support zone, says TD Securities. Signs of further deterioration in the eurozone
economy, emerging political risk in the region as factional discord arises in
Germany's ruling coalition, plus limited scope for the European Central Bank to
boost the economy by cutting rates further show the euro could weaken, it says.
The first test would be a solid U.S. employment reading Friday, as it could
easily send EUR/USD below 1.0950 to put a test of the early October multi-year
low of $1.0879 into view, says the bank. EUR/USD is last flat at 1.1003.
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.
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