So what way will the toilet paper go this week? It opened at 1.2338 lowest in 18 months. its up a bit to 1.236. But I think the wolfpack are ready to pound it again as nothing happened over the weekend.
Possibility of short sellers buying it back and ECB intervention could send it up. Goldman Snakes reckon it will climb back to 1.35.
I feel its going to go South of 1.20 this week. Interesting week ahead though.
"No one rules if no one obeys" - Tao
I'm still amused about why $1.25 is a "key support level". I reckon its because the OP wanted to claim that something significant had just happened.
"Elite - a small superior group; esp one that has a power out of proportion to its size." (Oxford English Dictionary)
The majority cannot therefore be the elite.
It has to do with technical analysis, and Fibonacci analysis in particular.Originally Posted by hiding behind a poster
EUR/USD looks to test 1.25 level in short-termAs a result, we should expect the EUR/USD to continue moving downward in that channel until it reaches the 0% Fibonacci support line at 1.25, where we will need to watch very closely.
You may or may not agree with technical analysis but it does go on.
More on Fibonacci here:
Fibonacci Analysis
Leonardo Fibonacci lived in the thirteenth century. His work on the relationship of mathematics and nature has been applied in physics, astronomy and engineering. Many famous market analysts believe that Fibonacci principles apply equally as well to markets and market psychology.
The Fibonacci number sequence is created by adding the last two numbers in the sequence to create the next number (i.e., 1,1,2,3,5,8,13,21,34,55,89,144 ). The first three numbers in the sequence are normally dropped for analysis purposes. The number sequence creates some interesting mathematical relationships. The most commonly used are: the ratio of any number to its next higher number which approaches a constant value of .618 (e.g. 34/55 = .618, 55/89 = .618); the ratios of alternate numbers which approach a constant .382 (e.g. 21/55 = 382, 34/89 = .382). For those that are mathematically inclined, .382 is also the inverse of .618 (i.e., 1- .618 = .382).
The number series and its ratios are used to create four indicators
Time lines are vertical lines drawn at fibonacci intervals from the significant high or low of the current trend. The first line is drawn five days after the significant high or low which is circled. In theory, future turning points should coincide near these time lines. Note how the significant low was made exactly 55 days after the significant high..
Fibonacci Ratios are horizontal lines drawn using the ratios .618, .5 and .382, from the same high or low point. These lines are often useful in identifying retracement points when you have missed entry. In our example, Soy Beans found resistance at the 50% ratio on the 89th day after the significant high was made.
We have turned the corner.I commend this Budget to the House. Brian Lenihan, 9 December 2009
The euros value against the dollar is of little import to a market watcher. It is only at 123 because the dollar itself is toast as well.
The only thing of importance is the gold price as it breaks through 1000
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Fine. Weren't you one of those insisting a few months back that we needed a devaluation? Well, here it is - and with none of the damaging effects on our debt mountain. So why are you still complaining?
"Elite - a small superior group; esp one that has a power out of proportion to its size." (Oxford English Dictionary)
The majority cannot therefore be the elite.
I never argued for a devaluation, as far as I can remember.
And I am not complaining, to my knowledge.
It is far too simplistic to say 1.50 EUR/USD bad, 1.20 better. There is a lot at play here.
We have turned the corner.I commend this Budget to the House. Brian Lenihan, 9 December 2009
Fibonacci Analysis is quiet interesting, it should never replace hard facts though, although some would say that it is hard facts.
I saw a very interesting article in the Sunday times, about correlations and spotting trends in the Stock Market. Data Mining!. One guy wanted to show that you could claim to spot trends using even non related data. He made his point very effectively by tying in Butter production in Bangladesh and the Dow Jones. When Butter production was up in Bangla. so was the Dow, obviously it was in no way related, but it just goes to show, if you look long enough you'll find it.
Brian fart over. Is there something to do with the Chinese and the Euro holdings and 1.25. I saw somewhere that they are using that as their baseline for holding the Euro.
HBAP, overall people are talking on Wall St. and in the meeja about 1.25 as a support, whether it is or not, in their minds it is, and that is enough.
Psychological levels can be important, the market claims to be rational but obviously it is no such thing, watch the herd charge against the Euro. Many for valid reasons and some because they see others doing it as well.
Romanesco broccoli mathematical properties | The Big Foto
One of the more stunning examples of Fibonacci numbers. Romanesco Broccoli
http://en.wikipedia.org/wiki/File:Fractal_Broccoli.jpg IF ITHE PIC DOES NOT LOAD
Sorry, I thought I was replying to Cassandra Syndrome there.
"Elite - a small superior group; esp one that has a power out of proportion to its size." (Oxford English Dictionary)
The majority cannot therefore be the elite.
Using our own currency and not the Euro, I said.
1.227 against the dollar. Was 1.223. Gold looks like is going to have another go at the $1,250 resistance level today. 1,015 Euro an ounce.
Looks like a rough day coming up in the markets as well.
"No one rules if no one obeys" - Tao
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