German Constitutional Court Backs Bailout Fund

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There was some flurry earlier in the afternoon around 4pm when rumours when drifting of a rejection to the proposal, which cause an initial spike down in the EUR/USD. This spike would have made many people panic (even if for a second), and taken out most stops, including mine.

When the price whipped back a few minutes later, most people were still in shock and thus slow to react, or were too busy cursing their luck. I wasn’t sure about the news at that time, but I could see that the bulls had gained control and the bears were now trapped. I immediately went back long.

Looking at strong bullish sentiment over the past few days, it is very likely that most players are gunning for the psychological round number of 1.300, which we might hit by the end of this week.



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