Category: Currencies
Video (Forex): War Of Words - A Telling Sign Of Reversal
When market psychology gets too one-sided, it's often a sign of an impending reversal.
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| By Vadim Pokhlebkin |
Published: Mon, 24 Mar 2008 18:15:00 ET |
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In early March, arguments over the weakening U.S. dollar got quite heated. Calls on the U.S. Federal Reserve to "do more" to support the dollar and forecasts for the euro/dollar exchange rate of $1.60 or higher were not uncommon.
Soon after – seemingly despite all odds – the USD reversed and started pushing higher against the EUR and other major currencies. Why?
Because collective psychological environment is crucial for the trend in forex markets. Watch Jim Martens, EWI's Senior Currency Strategist, explain this concept in this 4-minute video that he released to his Currency Specialty Service subscribers on March 5.
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