Ever doubt the old market adage that prices fall faster than they rise?  Well consider the following.  The S&P 500 climbed 13.52% in 30 weeks, and dropped 7.76% in only six weeks. Spot gold was 36.69% shinier in 10 weeks, but lost 23.07% of its luster in just five weeks. The dollar became 14.68% greener in 46 weeks, but faded 9.73% in 25 weeks. Fear is definitely a stronger emotion than greed.  Gold was lower by more than 6.0% today alone, after the Nikkei was thrashed for over 4.0% last night. The S&P 500 closed right at my technical support level of 1223 today. Anything lower and the stock market might be in for a bit of trouble. Something tells me that large hedge funds are either voluntarily liquidating long holdings, or being forced to liquidate through either margin calls or liquidity problems. We shall watch very closely to see how it unfolds.

We still have 1.2525 EUR/USD bids on the books with stops below 1.2490 against the daily Fib support zone that we have been watching for 48 hours now. We watched our bids come as close as 5 points from being done on multiple occasions today, and as of 6:26 p.m. ET, still no dice. Frustrating? A bit. Why don't we just â�,��"pay upâ�,� and get in the trade? You could, but I'm not. Why take our 35 point stop, stretch it out to a 60 point stop, and require that we make 120 points to justify even taking the trade? I don't ever want to be in a position where I have to make a big figure or more on a trade. Big figures are tough to come by lately. Or, why don't we just pay the current offer of 1.2545 and put a stop 30 points below that? Well here's a tip for you. Don't put stops just above round figures like 1.2500 after an extended downtrend because the market will most likely want to see what the order flow is like just below the round number.

The EUR/USD trend of the past several sessions is obviously down so the chances of 1.2525 trading are fairly good. Obviously, our analysis is strong as the 120-minute chart has painted three deep wicks into our zone that all have successfully held. Gold closed the day in New York right at our Fib support zone of $560/oz. Let's leave the bids where they are hoping the overall trend of the market drives price into our limits, and then allow price to probe just below 1.2500 before starting that slow grind back up.

Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

Disclaimer
The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.