Mario had some fun with the markets yesterday.
I had several members asking for my take on the Euro/Dollar reversal
yesterday as a result of the ECB grenade thrown into the markets.
That was all down to Mario Draghi, not following on from Powell on
Wednesday and tightening or at least accelerating tapering. The market was
convinced he would, then the bombshell was saying no rate rises until 2019
caught the market on the wrong side of trades.
The positives are that that created several Key Reversals in the EUR pairs,
CHF and Cable. The Euro hovered at the point of reversing giving some time
to get re-positioned.
From here, the dollar weakness has been reset to strength following through
on Powell's Wednesday words that they are convinced the US economy is
strong. Mario's actions confirm he believes Europe's to be weak. The
consequence of this is that we could well get some decent trends in the
likes of EURJPY and AUDUSD that was already the weak currency, etc.
That's for the next week or so. Today, Friday 15th, is profit taking day so far with
modest rallies across the board, so now is the time to look for rallies that might
give much better short entries. |
