Eur/USD

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There seems a real incentive to sell the dollar at every opportunity. Despite another good set of results today, the effect wsa short-lived. So I wouldnt be surprised if the EUR/USD went a lot higher today. However, if the newsflow from the US still exceeds expectations, there is only so many buyers who will be on the bid, once they are exhausted, lower levels will happen. Its a paradoxical market though.
 
I find it rather entertaining to watch. :) Markets selling the dollar just because of a supposed decline that "must" happen. Abstract feelings are in season, but hard facts and numbers are ignored.

You gotta love it. The ECB must be getting ready to panic as the EUR appears to make a run for highs again.
 
Quote from downrivertrader:

Here is some info on possible options expiry for tommorrow. Take it for what it is worth.


Boston, April 20.
EUR/USD is hunkered down in ranges with few catalysts in sight to send prices
outside the 1.2285/1.2395 range in place over the last 24 hours. Bernanke"s
speech on community economic development late this afternoon is unlikely to
touch on anything with any implications for monetary policy. The calendar is
empty tomorrow except for some European data like Eurozone trade data, French
consumer spending and Italian retail sales. None are likely to be big market
movers. A bit of caution is expected ahead of the weekend G7 meeting, but
currencies are unlikely to be a prime subject given the relative stability of
the USD in recent months. Perhaps the usual appeal for Asian currency
flexibility will be repeated.
Of note on the options expiry front tomorrow is the expiry of a 1.2400 exotic
with a multi-million USD payout. Should EUR/USD garner any upside momentum
overnight, expect a concerted effort to trip the barriers. EUR/USD trades
quietly at 1.2318.
More...
I think it's always best to just trade the market technicals and price action instead of interpretation of what the news will do to price or whether or not the market is behaving the way a person thinks it should. Besides, it's a lot less work adding news to the mix of analyses.
 
Heh...new home sales through the roof. bond yields at highs and what happens? Dollar selloff. I love the craziness!

Reminds me of the good old days of November 2004 when people said "Sell on bad news, and sell again on good!"
 
Ivanovich which crosses are you playing at the moment?
I think buying dips on eur/usd and gbp/usd is the way forward at the moment.
 
Ivanovich, so how did you play it in Nov 2004?
Surely if good US news is punished and bad news is too, then what is there to strengthen the dollar?
 
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