Eur/USD
- Thread starter ForexPro
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Seems like there is some downside on the hourlies.
Damn, why do I always have to make stupid short term predictions? Maybe I should stick with longer term prediction.
1.2300-1.2350 last stand of the bears.
We'll go through tomorrow when Trichet and Co wave a flag called "TIGHTENING MONETARY POLICY!"
IFR just released this which summed my sentiment exactly....
"Boston, April 5. Euro-phoria is getting a little silly this morning as rumors swirl that the ECB could hike as early as tomorrow. The ECB has gone out of its way to be transparent and has said it sees no advantage in surprising markets, so the odds of a move tomorrow are near zero. The odds of them signal tomorrow for the market to expect a hike at the May meeting are quite good. This is one reason why we are very cautious in getting caught up in the strong EUR theme. The risk near-term is that the market buys the rumor of a rate hike signal and sells the fact. Add in the proximity of US payrolls and the fact that the Fed is still data dependant and you could see dealers run headlong for the exits. Good options-related selling is seen in the 1.2300/20 area, dealers say. Bids remain at 1.2240/50 in good size. "
"Boston, April 5. Euro-phoria is getting a little silly this morning as rumors swirl that the ECB could hike as early as tomorrow. The ECB has gone out of its way to be transparent and has said it sees no advantage in surprising markets, so the odds of a move tomorrow are near zero. The odds of them signal tomorrow for the market to expect a hike at the May meeting are quite good. This is one reason why we are very cautious in getting caught up in the strong EUR theme. The risk near-term is that the market buys the rumor of a rate hike signal and sells the fact. Add in the proximity of US payrolls and the fact that the Fed is still data dependant and you could see dealers run headlong for the exits. Good options-related selling is seen in the 1.2300/20 area, dealers say. Bids remain at 1.2240/50 in good size. "
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