Rebel Traders – Analysis Without The Hype

Now here is something unexpected tonight.

The Euro dropped suddenly this evening on a rumor that German Chancellor Merkel may resign. Speculation is that due to Merkel’s loss of coalition support she may step down.

This is all the information I have at this time. This news appeared on my wire service tonight and there is no other information at this time. Moments after the story hit the wires the Euro dropped and in turn the US Dollar moved up.

The chart shown here is a 5 minute chart of the EUR/USD at the time the story began to circulate on the wires.

The S&P 500 futures also moved down slightly as the US Dollar futures moved up.

UPDATE: A spokesperson said the Merkel resignation talk is “without merit”

Keeping tabs on the currency markets can provide additional insight into equity market movements.

EUR/USD is in a healthy rising wedge and is at this time testing the upper limit of that wedge now. A pullback in the EUR/USD cross should lead the equities lower as well.

EUR/USD Cross