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Optimism Returns

By September 12, 2012

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With rumors of debt problems being soon solved in Europe and the term “QE3” being thrown around. Markets seem to be returning to complacency with their risk.

Once again the Euro is rising as well as risk related currency pairs like AUD/USD. The EUR/USD is currently sitting around the 200 day moving average, a choice from here should be clear within a week or so.

I'm not sure where the optimism is warranted, since this is all just jawboning. Nothing concrete has happened to this point, it's pretty much wishful thinking.

However, markets do what they do. They often thrive on “talk” and “ideas” that get thrown around.

For the upcoming weeks, keep an eye on risk currencies. If you are trading in favor of risk, keep your rear end covered.

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