EURUSD Dec 05 to Dec 09 Outlook
By News Robot
Lawrence’s Comment
Recap
The bounce back to B-0 was expected but you cannot predict the time that the governments would take action in the scale like last week. The interesting part, though, is that the all out squeeze on the shortsdid not even tag Y+1 and closed the week around Y-0.
The bounce back to B-0 was expected but you cannot predict the time that the governments would take action in the scale like last week. The interesting part, though, is that the all out squeeze on the shortsdid not even tag Y+1 and closed the week around Y-0.
Outlook
Central bankers were not trying to save the system. They were doing this to benefit their friends, period.
More intervention is expected. If that happens, looking for breakout play from B+1 to B+2 and B+3.
Comments
Do you therefore think that there will be a disconnect between the move in the currencies and ES, may be because ES is overvalued with respect to Euro etc.?
Since they like to keep euro above 1.32, any move below or just touching 1.32 will easily trigger another round of central bank intervention.
So relatively speaking, euro will likely just dirft lower while ES will drop to its support zone.
News and rumors did not produce enough buzz to drive euro higher.
A clearly visible down channel (sort of bull flag) is formed on hourly.
Euro is likely range bounded until something material coming out of this EU summit.