The "fiscal cliff" agreement did not set the course for EUR/USD -- here is why.
By Elliott Wave International
First, a word on how we all are conditioned to think that, "momentum will remain constant unless acted on by an outside force." Read this excerpt from Robert Prechter's May 2004 Elliott Wave Theorist:
"...'Momentum will remain constant unless acted on by an outside force.' This mode of thought is deeply embedded in our minds because it has tremendous evolutionary advantages. When Og threw a rock at Ugg back in the cave days, Ugg ducked. He ducked not necessarily because his mind had inherited and/or learned the consequences of the Law of Conservation of Momentum.
"The rock would not veer off course because there was nothing between the two men to act upon it, and rocks do not have minds of their own.
"Earlier animals that incorporated responses to the laws of physics lived; those that didn't died, and their genes were weeded out of the gene pool. The Law of Conservation of Momentum makes possible our modern technological world. People rely on it every day.
"Despite its use in so many areas, however, it is inapplicable to predicting [the financial markets]..." Continue reading "Forex Trading: Why You Need to Look Past Fiscal Cliffs"