Thursday 8 March 2012

Neutral ground.....

Indeed E$ traded within the guided range yesterday without much fanfare. 

Basing on the past 48hrs price action, E$ downward momentum has pretty much waned and has turned neutral to slight bullish. For now, market is comfortable mark timing within 1.3100/20-3180/00 and awaiting for an impetus to break out either way, probably during the Euro/NY session or even into Friday's US employment data. Can't get too bullish near the top end of the band for now.

To certain extent, I believe the E$ at current level has already priced in a possibility of a negative outcome from the Greek PSI and the realization if happens would trigger an initial sell off toward 1.3050/80 before a strong rebound toward 1.3200 and potentially 1.3260/90.

Some useful information I gathered so far..... Asian reserve manager interest around 1.3100 and stop loss orders below 1.3080.



Do take of note of BOE, ECB and BOC announcements this evening.
All the best!

Update1: The impetus came earlier than expected and we have our breakout and up!!  Apparently, there was some news on the optimism over the Greek PSI take up and E$ wasted no time to chase its target of 1.3260/90.
Heard strong demand at 1.3160 for now. Enjoy the ride!

No comments:

Post a Comment