The one with the jaw-dropping drop

Cha-ching! For Euro bears… Oh yes baby. Mr. Euro got low enough to reach our bearish target again, clearing out our 5^th bearish EUR/USD trade with profit. Aren’t you happy that you’ve been following Invest Diva’s signals?

And even more jaw-dropping than that is the Swiss franc. In my entire time trading forex, I ‘ve never seen such a poor dance move, like ever. The USD/CHF pair all of the sudden fell off the cliff, all the way back to where it was March 2014… Clearing all the progress it had made over the months in mere 3 hours.

The jaw dropping drop was deeper than the trader’s jaws (as you can see in the picture below.) This is despite the fact the Ms. USA is getting stronger versus the other currencies.

You see, Switzerland’s central bank scrapped its three-year-old cap against the euro, sending a shockwave through currency markets. The means the Swiss Franc all of a sudden got extremely powerful, and therefor in the USD/CHF chart we see the massive drop.

(If you don’t understand why USD/CHF plummeted while Swiss Franc itself got stronger, that only means you need to go back to the Invest Diva education course)

You may be asking if I made money on the pair. The answer is a big’ol NO. Although the ones who were anticipating this dropped probably made a huge amount of money overnight. And they are no one but the ones who knew about the SNB plans. So as responsible traders who have limited access to insider political news, we need to get back to our conventional methods of market analysis and make money one-step at a time… instead of hoping for an overnight wealth. It’s healthier and you probably won’t get killed by the government along the way either J

On other “less important” news, Mr. Aussie had a good day today! To our surprise, Australia added 37.4K jobs versus the estimated 5.3K, and the jobless rate improved to 6.1%. However many analysis still aren’t impressed and think that the RBA will reduce their benchmark rate from 2.50% to 2% by the middle of the year.

In Europe, the European Court of Justice took two years to come to the verdict, announced yesterday, that sovereign bond purchases by the ECB might be legal.

The ‘verdict’ gave markets little in the way of direction in which to trade the euro, with short positions already at record levels on the currency, nobody really wanted to add anything to the pot, without any gauge as to what size and scope the ECB would take. The news that there ‘might’ be some QE wasn’t enough to save stock markets from having a bad day yesterday.

Coming up today in the New York session is the speech by Deutsche Bundesbank President Jens Weidmann which could create further volatility in Mr. Euro’s dance moves.

Intraday Forex Technical Levels

EUR/USD 4-hour: Dropping.

Invest Diva positioning: Short positions below 1.1663 with targets at 1.1536 and 1.1384 in extension.

Technical reasons why: The pair reached our bearish target at 1.1663 below the Ichimoku’s cloud. The RSI is below the neutrality area.

Alternative Scenario: Above 1.1663 look for further upside towards 1.1782 and 1.1875.