U.S. Dollar gained 0.5% against euro today after the Abu Dhabi government bought a $7.5 billion stake from Citigroup Inc. This sum will help Citi to recover from the recent subprime lending write-offs, as this bank announced surprisingly high losses from this kind of lending.
EUR/USD fell below 1.4800 mark after a good fundamental signal which really should have supported dollar, but it also triggered a massive selling on this currency pair. Because many bullish traders put their stop-loss on the psychologically supportive level of 1.4800, breaking below it pressed on EUR/USD even more – at one time it dipped to 1.4711.
Such a fast and volatile movement shouldn’t be considered a beginning of long-term trend. More probably it will jump back tomorrow, but traders should be aware of a possible major downtrend generation at a present EUR/USD peak.
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