Message 7

Two interesting articles below:

http://www.cnbc.com/id/32448965

http://www.forbes.com/feeds/ap/2009/08/17/ap6785667.html

Well what a day! China down 5.8% overnight, followed by the FTSE100 down 1.5% and the S&P500 down 2.3%.

I certainly didn't think equity markets would fall like they did on Friday...are we in for a substantial correction to the markets. It would definitely be due a correction and would be perfectly normal. Of course, a correction in equity markets means risk aversion and a stronger USD.

In retrospect, after China's big fall overnight I should have waited before entering any trades (but the wonder of hindsight!). The price is stalling between 1.4046 and 1.4096 which is short term support and resistance. Obviously the obvious direction is down, but I'm happy to see what happens with Asia overnight and the German (and EZ) ZEW economic sentiment tomorrow, but if it the Euro is looking week I'll be looking to cut my losses and sit on the sidelines for a retracement so I can sell the Euro.

Looking at the 3H and daily chart you can see that 1.4000 is a big area of support.

The current price is 1.4083 so I am -47 pips with one trade and +28 with the other so a net -19pips or -0.48% of capital.

Will be back in the morning.