Broker to Trading

And indeed the market fell on the 5/28/10. The technical bounce of the Euro 5/27/10 was overcome and it continued back down. This revalued the dollar upwards and partly reversed the equity revaluations which caused the surge on 5/27/10. The market did not fall that steeply as the Euro did not completely have its gains reversed.

The Forex market does not go up and down, it goes in waves, retracing its steps. The important issue is whether it is on an upward or downward trend. The long bearish candle on the 4h chart is ominous, not to mention the double top on the 30m. This said, on the 1w chart EUR/USD is consolidating, which may give some hope for equities.

Because the market is about cash flows and not fundamentals, the Forex market is determining events in the equity market. When the recovery gains strength, this situation will reverse. It is helpful to look at Forex charts which show money flows. These are particularly EUR/USD and USD/JPY. These will give you a useful insight about what is happening in the equity market.

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