Vantage FX (www.vantagefx.co.uk) investigate how geopolitical influences change market moves.
Geopolitical Week
We are looking initially at a 4-hourly EUR/USD chart from 21 August, and since then we can see a trend into selling euros and buying dollars as the US became more bellicose. There is a 38% Fibonacci retracement support during the attempt to stabilize as many were not keen to go to war. Now we are analyzing a 1-hourly EUR/USD chart from Friday onwards. On Sunday Larry Summers unexpectedly resigned from the race for candidacy of the Fed. Along with the question of who will take over from Bernanke, there is debate over tapering of QE. We can see that the EUR/USD has consolidated in a rectangle formation at 1.3350, and it may stay in this range of 1.3325 - 1.3385 until we get concrete proof that tapering will happen.
