A terrific session where all eyes were on the euro as the ECB took centre stage with their rate decison and associated conference, and as we had forecast, the ECB gave the single currency a healthy shove lower, as doveish talk coupled with a lack of inflation, continue to weigh heavily.
For intraday traders this was a classic short waiting to happen, and once the initial volatility had calmed the bearish trend developed strongly, helped further by strength in the US dollar. The currency strength indicator and the currency array indicators highlighted this move perfectly across the faster timeframes. In addition with a 1.2billion option expiry at 1.1250, this also helped to drive the price lower.
By Anna Coulling
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