And we are back!!

Hi All,
Today, my internet connection went down and it took me few hours to get that fixed. That was the reason that i could not update the blog today. Normal service would resume from tomorrow. But normal service in the crosses does not seem to be anywhere closeby. The crosses seem to be getting hit a lot over the past couple of days and all attempts at recovery seem to be futile.

This is something new to the crosses as far as the last few months are concerned. The crosses have always bounced back from a correction within a couple of days but this correction in the crosses seem to be going on for about a week with no sign of turning back.

This has raised my concern on wheher this could turn into a much deeper correction than initially anticipated. The GJ has already fallen 400 pips in less than a week and we have to see whether atleast now, it is able to find some solid support. Everytime it starts to hover around a support, people try to get in thinking that it would be a solid support from where the rise would begin but in the end, that support is broken as well and this has been the story for about 4-5 days now.

As for the GU, as updated in this blog a couple of days ago, it seems to have reached a top and the news from the following weeks would show the adverse effects of the weakening dollar on the economies of the important countries of this world and this would lead to weakening of the other currencies and hence strengthening of the USD. This would be seen only in the coming 2-3 weeks and hence i feel that the GU would drop further in the next 2-3 weeks. The weakening has already started with the stalling at around 2.0650 and the drop from there. Lets see how the market pans out.

Happy Trading!!!