Will the Euro Collapse?

Forex traders trade with the trend, that’s a fact. Trends are the strongest indicators of how well the currency pair are doing over the last couple months or years. Trading the trend may sound simple and many traders are taking it as a “de facto” of their overall trading strategy, if so … you really need to reconsider your Forex strategy.

The market acts like a girl… fickle minded. You just don’t know what she wants exactly. Here’s the situation: Think of the market as a girl, the US as the hotshot boyfriend, and you (the trader) as the “friend.”

Current positioning is remaining firm, we're seeing the expected pullback in EURUSD, but the pair remains in the strong long zone overall. With the release of the Annual Budget in the UK at 8:30 am EST we expect some volatility with GBP crosses, this could have an impact on retail positioning.

Intervention. For the first time in a decade we're seeing multi-nation intervention to help weaken the Yen, as a beleaguered Japan works to recover from a multi-faceted disaster. Weakening of the Yen eases some of the strain on Japanese exporters, many of whom are being forced to keep factories closed due to power shortages and structural damage after the earthquake.